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ICFE eNEWS #12-17 - June 5th 2012

7 Reasons to Buy versus 7 Reasons to Rent

By Jim Garnett, a/k/a Ask Mr. G, a member of the ICFE's Board of Educational Advisors.

Is it better to buy a home or rent? The "right" answer for you depends entirely on your individual circumstances. That being said, here are 7 reasons to buy vs. 7 reasons to rent that will help you think through the situation.

7 Reasons You Should Buy

  1. The home's "equity" (the difference between the value of the house and what you owe on it) often increases providing you with an appreciating asset and a down payment for your next home purchase.
  2. The monthly payments can often be about the same for owning or renting.
  3. There is a greater sense of stability, security, and community in owning your own home.
  4. Homeowners can change the decor and landscaping to suit their own tastes.
  5. Homeowners can do their own maintenance or hire it done without having to wait for someone else to "fix it when they have a chance."
  6. Mortgage interest and property taxes are usually tax deductible.
  7. Mortgage payments do not tend to increase like rental payments often do. Mortgage payments will increase due to the terms of a balloon mortgage, a refinance, or an increase in the escrow account.

7 Reasons You Should Rent

  1. The initial rental deposit is much less than a down payment for a home and is usually refunded when you leave to apply on your next apartment.
  2. It is much less difficult to move and much less costly.
  3. The cost of furnishing an apartment is much less than a house.
  4. There is little or no cost for maintenance, repairs, or upkeep.
  5. There is no chance of foreclosure in which you can lose all of your investment.
  6. Rental insurance and monthly utility costs are normally much cheaper.
  7. There are no closing costs or realtor fees in renting an apartment.

Ask Mr. G
© Jim Garnett, The Debt Doctor
AskMrG Consulting, LLC
2216 SW 35th Street
Ankeny, IA 50023
515-577-1799
askmrg@yahoo.com
AskMrG.com


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Sent by:

Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)

About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

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Home ] ICFE News Releases ] ICFE in the News ] Children and Money ] Financial Education ] Resource Center ] Credit Card Tips ][ Credit File Correction ] Mending Spending ] Links and Resources ]  [ Online Store ]

 

Copyright ©  1997 - by Paul S. Richard
and the Institute of Consumer Financial Education, All Rights Reserved.
View our
Privacy Policy Our Terms and Conditions

Institute of Consumer Financial Education
PO Box 34070
San Diego, Ca 92163
Paul S. Richard, Executive Director
Phone 619-239-1401

FAX 619-923-3284

Questions for www.financial-education-icfe.org Click to go to Website Contact Us or 
Website Design Donated by Desgn School Programs