Buying, Renting, & Refinancing

• Flexibility: You can make a quick decision to move out or relocate for work, especially if your lease is month-to-month.
• Less responsibility: The landlord is generally financially responsible for major repairs and maintenance.
• Low upfront costs: Aside from the security deposit, there are typically no other fees.
• Set monthly costs: You know what your rent will be each month, so you can budget accordingly.
• No additional taxes or fees: No surprise costs, other than what is stated in your lease, to worry about.

Renting:  Cons

• Rent may increase: Your landlord may increase the rent, which is out of your control.
• No equity: You are not building equity while you rent.
• No tax benefits for renting a property.
• No customization: You cannot renovate your home to your liking.
• Pet policies: Subject to pet policies and fees.
• Lack of stability: Your landlord can put the property up for sale at any time, forcing you to move once your lease is up.

Buying: Pros

• Stability: Owning a house provides security.
• Freedom: Ability to renovate and make any desired upgrades.
• Building equity: Buying a house can serve as an investment. You may even choose to rent the property for monthly income.
• Federal tax benefits: If you itemize, mortgage interest is tax-deductible, along with property taxes and certain closing costs (subject to limits).
• Stable monthly payments: A fixed-rate mortgage means you'll pay the same monthly amount for principal and interest until the mortgage is paid off.

Buying: Cons

• More responsibility: House projects and maintenance take time and are costly.
• High upfront costs: Down payment, closing costs, fees, etc.
• Less mobility: If and when you sell the property, the process takes time.
• Property taxes: Will increase over time.
• Valuation: There are no guarantees that your property will appreciate.
• Maintenance costs: There are always unexpected maintenance costs that will stress your savings.

Questions and/or interested in how this applies to your financial life?

Email us here: info@afsfinancialgroup.com.