Financial Impact of Taxes and HOA Fees

Discover the December market stats for the Greater Tampa Bay Area! Learn key insights on inventory, pricing, and new construction sales to help you navigate this neutral market.

We have all heard the great “renting vs buying” debate for years. Some people love renting because, if something in the home breaks, they’re not responsible for fixing it. And I get it. I own property and have had some particularly bad experiences when something went wrong (at the worst possible time). And it’s true, when you rent, you have fewer responsibilities. However, renting isn’t as hands off as many people think, and to be honest, you’ve probably already been paying for those costly repairs without even knowing it. In fact, you’ll probably pay more as a renter than you would as an owner. Let me explain… #1 Owning Will Yield A Return On Your Investment When you own a home, you get tax deductions, which is a big incentive. And unlike renting, your mortgage can’t go up due to inflation or deflation. You’re also building up tons of equity, which means that, when you sell, you’ll have more cash for retirement or more cash to put down on your next home. #2 Renting Makes Your Landlord Rich (Not You) People who own homes are essentially paying into a huge investment every month, so although they have a house payment, it’s going to their mortgage - not to their landlord’s pocket. Additionally, most landlords raise the rent every year, to adjust for the cost of appreciation, which means that the renter is actually the one who’s paying for the depreciation (and future repairs) on all of the appliances of the home. If you’re going to pay that cost anyway, it’s probably better for you to pay them on a home you actually own. #3 Rent Costs are Up Generally speaking, rent in sought-after areas can be massive. Right now, most rent costs are up 5% or more - But while interest rates are in flux. It still means that, for about the same price as renting, you can have more space, freedom, and peace of mind in a home you own. #4 Owning Has More Stability The tenant landlord relationship is notoriously tricky. Landlords write the contract, name their price, and control pretty much everything about the place you call home. They can enter your home, hire their own repairmen (however sketchy and DELAYED they may be), or even sell the home... and there’s very little you can do about it. When you own, you have greater control over all of these things. #5 You can’t make it your own One of the worst things about renting is that you can’t personalize, decorate, or improve the space. So renters are typically stuck with the paint, flooring, hardware, and appliances as the day they moved in… And sometimes, decades before they moved in! (Hello shag carpets!) The sad thing is, most renters rent because they don’t even know that they can comfortably afford a home. They just need a great team who can help calculate the math behind renting vs. owning. If that sounds like you (or someone you know), we can help. No pressure, no sales tactics, just helpful advice and the guidance you need! Our team includes no pressure mortgage brokers who will work with you to see what makes sense for YOU! And finally, if you’re not thinking about making a move just yet, feel free to save this blog for future reference, so you can come back to it! Have a great week!