Words To Publish

Regardless if you are a newly minted college grad, or a retiring senior, one of the biggest financial decisions you can make revolves around the place you will live and spend the vast majority of your free time. The calculations that you will use to make the decision to rent or buy may vary depending on what area of the country you decide to live in, but the basics are mostly the same. For example,  in my case flood insurance is higher because I’m looking at naples, fl rentals, but I still have to run the numbers to see what is best for me over the next few years.

To get a rough idea of the numbers behind the rent or buy decision, compare the costs of buying a house or renting it. Most costs in renting are straight forward and spelled out in the lease; renters can pay for the basic rent plus utilities, and sometimes lawn care and any damage incurred by the property during their rental period. Pretty simple, no? On the other hand, home ownership has a whole slew of additional expenses attached-owners pay the mortgage, plus insurance and taxes, plus utilities, plus upkeep and maintence. To make matters worse, and somewhat more complicated, homes in gated communities (like the naples, fl homes that my wife and I have been looking at buying), tend to have association fees to pay for grounds maintence, and many communities even have club fees that allow members to use recreational areas or golf courses. When you add all of this up, there is no doubt that owning the home is far more expensive then renting.

But what happens over the years while you are renting instead of buying? Historically, home values tend to rise ahead of inflation, making them an investment. While its true that you’ll be putting more of your money into your home if you own it, you’ll also be benefiting from the increase in its value over the years. On top of that, there are tax advantages of owning a home that should be considered in your decision. While all of this makes the decision a complex one, there is one more thing to consider as well-pride of ownership. In my humble opinion, nothing beats owning my home sweet home.