Do your homework and use a comparison calculator to help you

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canada goose store Whether renting or buying a home is the best financial choice usually comes canada goose outlet las vegas down to one thing: timing. Finding an affordable home (and later making a profit on it) depends heavily on how long you plan to keep the property.According to Zillow, for instance, the current home listing price in Bothell, Washington, canada goose jacket outlet uk is $698,448, and the average rental price is $2,500. Assuming a 20% down payment on a home purchase or a 5% annual increase in rental price, you’d need to own the home for at least two years before it becomes the better option.Keep in mind that canada goose outlet miami not every market is booming. homes still haven’t returned to their pre recession values, according to a Trulia report, and owners looking to cash out may have to wait until 2025 before securing a profit. Carrying canada goose outlet london debt is something of a risk, and a 12 month lease gives you the freedom to move and adjust your housing expenses based on your current needs and income canada goose shop uk level two things a fixed mortgage can’t deliver. Do your homework and use a comparison calculator to help you understand canada goose outlet toronto the costs of buying and renting.2. Do you know all the costs?Comparing rental prices to mortgage payments is a good start, but it’s also important to consider the hidden costs associated with each. For renters, the “cost” is the lack of home equity and the inability to canada goose outlet trillium parka black claim housing related tax breaks.For example, suppose you’re a homeowner who lives in New York and falls within the 28% income tax bracket. If your mortgage is $200,000 with a 4.5% interest rate, canada goose outlet you qualify for $3,585 a year in tax deductions. That said, you’ll also deal with expenses that don’t impact a renter’s monthly budget, including:Homeowner’s insurance: Protecting your home from damage comes at a price, and while insurance rates vary, the rule of thumb is to divide your home’s value by 1,000 and multiply the result by $3.50. If you home’s value is $200,000, for instance, you’d pay around $700 per year, or $58 per month, for coverage. Renter’s insurance, meanwhile, is usually less than $20 per month.Private mortgage insurance (PMI): If you have less than 20% equity in your home, expect to pay PMI, which is usually between 0.50% and 1.2% of your loan value. For example, 1% assessed on your $200,000 mortgage would add $200 to your monthly housing expenses until you built up at least 20% equity in your home.Property taxes: A typical household spends $2,127 each year on property taxes, but you could pay much more depending on location and community benefits.Maintenance: Homeowners shell out nearly $170 per month on average for regular maintenance and repairs, and that’s not including big ticket items like a roof repair, a new HVAC system, and other needs that canada goose uk can cost canada goose outlet vip four or five canada goose outlet in canada figures.In this scenario, owning that $200,000 home costs $7,267 a year in extra expenses more than double what you’d save in canada goose outlet store uk taxes. As a renter, you won’t need to worry about adding these fluctuating expenses to your budget, and your landlord may even pick up the tab for canada goose parka outlet uk your utilities, saving you even more compared to the average homeowner. Consider the hidden costs to learn whether those big tax breaks are worth it.3. Are you “throwing money away?”It’s often said that renting is “throwing money away,” but building home equity isn’t the canada goose discount uk only way to watch your money grow. There’s no denying that property can be a valuable asset, but on a month to month basis, owning a home is still more expensive in all 50 states, canada goose uk site according to a 2017 NerdWallet analysis, and an inflated budget can seriously impact your ability to save for retirement.According canada goose outlet belgium to the Economic Policy Institute (EPI), the average American has less than $5,000 in savings, and couples between age 50 and 55 only have about $125,000 earmarked for their golden years. That’s not nearly canada goose outlet toronto location enough to fund a long and financially secure retirement, and lower monthly costs can help you divert funds into catch up 401(k) and IRA contributions, liquid canada goose outlet seattle savings, and other investments. For instance, if you’re 50 and can save canada goose outlet sale $500 a month in housing related costs, investing it at a 7% return will yield almost $169,000 by the time you reach age 66. Motley Fool Issues Rare Triple Buy Alert This Stock Could Be Like Buying Amazon in 1997 7 of 8 People Are Clueless About This Trillion Dollar MarketOver the course of several years, you’ll likely come out ahead by owning rather than renting. However, if canada goose outlet winnipeg you have reason to doubt your ability to keep up with the costs of homeownership, or if purchasing a home would leave you unable to save for the future, then renting could be the more responsible choice for now canada goose store.

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