San Mateo Credit Union

TO BUY OR NOT TO BUY: That Is the Question Owning a home is oen touted as the American Dream. But the truth is: Homeownership isn't always rainbows and butterlies. For some, renting may actually be a better option. So beore you venture too ar down the home- buying path, irst take some time to decide whether or not homeownership is right or you. Here are some things to consider: FL E X IB IL I T Y U P- FR O N T COS T S TA X A DVA N TAG E S EQ U I T Y IN D EPEN D EN CE U PK EEP General guidelines dictate that homebuyers should stay in their home or at least our or ive years to break even on closing costs and other ees. For those who appreciate lexibility or plan to relocate within the next ew years, renting is likely the smarter choice. Homeowners should be prepared to pay a down payment, closing costs and other ees when purchasing a home. For renters, the up-ront costs are much lower – usually only consisting o a security deposit that might amount to one or two times the monthly rent charge. Renters may not receive much in the way o tax breaks related to their apartment, but some homeowners may be able to deduct at least a portion o their mortgage interest. You should check with your tax advisor to ind out i you would be able to gain a tax break based on your individual circumstances. Homeowners have the opportunity to build equity in their purchase – a huge beneit when it comes time to sell or i they wish to take advantage o a home equity loan. Renters, on the other hand, will not get back any o the money they pay or the use o their apartment. When you own a home, you are ree to make whatever changes you wish (barring any exceptions rom a homeowner association). Such reedoms do not exist or most renters. In addition, homeowners don't have to seek permission rom a landlord i they wish to add a pet to their amily. Leaky roo? Failing HVAC system? Broken water heater? As a homeowner, these are your problems – not a landlord's (although a home warranty could help you cover some o these costs). I you don't eel capable o handling these potential situations or simply wish to avoid regular upkeep such as yardwork, an apartment is probably or you.

• Cover