Making the decision to rent or buy can be a tough one. There are benefits to both depending on the market, your financial position and needs.
Here are some issues to consider:
- The down payment for Ocean Isle Beach real estate and closing costs are likely to exceed any initial cash outlays associated with renting.
- Owning real estate also tends to cost more than renting and can tie up money that could be invested in other more lucrative options.
- Costs associated with Ocean Isle Beach NC rentals tend to be fixed where as home maintenance and repairs can create unexpected costs associated with ownership.
- All repairs, maintenance, and some utilities are absorbed by a landlord when renting but with buying fall upon the owner.
- In addition to mortgage payments, owning a home incurs other costs such as insurance, repairs, property taxes and mortgage payments.
- Owning a home allows you to customize it and provides one with a peace of mind.
Before deciding to purchase Ocean Isle Beach real estate you should use a Rent versus Buy calculator to help you determine which option will be more beneficial to you. These calculators can be found on the New York Times website or through a search engine.
When accessing the cost/benefit of purchasing there are a number of components to consider. These include the ability to build equity, tax breaks, and the investment factor. Real estate builds equity. This equity builds as the mortgage is paid off. This equity builds value that you can convert to cash if needed. However, mortgage payments for the first few years may only cover interest and will not add to the equity of a home. Mortgage interest and property tax are both deductible versus money spent on rent which is not. As for the investment, real estate can appreciate in value, build equity and upon selling these profits can be realized.