however, equity doesn’t equate to profit. If home values in your area go down or remain stagnant during your time as a homeowner, the appraised value of your home could decrease, putting you at risk of a financial loss when you sell.
DISADVANTAGES OF RENTING
No equity building. The monthly rent you pay goes to the landlord. It represents the fee you pay for using the property. You gain no ownership in the property, no matter how long you live there. You are essentially paying the owner's mortgage, taxes and insurance for them. No tax benefits. While homeowners can deduct property taxes and mortgage interest on their tax returns, renters aren’t eligible for housing-related federal tax credits or deductions. Home improvements go to the landlord. Any structural and decorative home improvements that renters make belong to the building owner and will have to stay behind when you move to a different place. Additionally, approval for desired major redecoration will be necessary. After all is said and done, the decision to buy or rent depends on the prospective home buyer’s circumstances. There’s no denying, though, that a home of your own is a good financial and a great emotional investment. An investment in a home can also mean an investment in your future. If you are concerned with interest rates, remember those also fluctuate. If you are renting or living in base housing, you are paying 100% interest toward the owner's mortgage. When you move out, you don't get any of the money you invested in the home during your stay. When you purchase, you gain equity in your investment and pay a significantly less in interest rate. Additionally, if you are receiving BAH, what better way to fund your home than using tax-free income to pay your mortgage? Then, if you choose to sell your home, you get all the
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