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Is owning better than renting for my situation?

I have a mortgage balance of 130,000 and 9 years remaining on a 10 year loan at 2.75%. The home would sell at about 230k. The location is Columbus, Ohio 43235. I pay about $750.00 monthly in taxes, insurance, and mortgage interest. I could rent for about that same price and am curious on the pros and cons. I plan to be in Columbus for 10 to 15 years.
  • August 04 2013 - US
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Answers (3)

Well, Mitch, I'd go to the library (or website) and look at what comparable places were renting for 10-15 years ago. 
  • August 04 2013
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Depending on what you do, there could be tax advantages for renting as well. If you are self-employed, run a business from your house, you can take a number of tax advantages there as well.

Just looking at your scenario, you are better staying in the house, paying it off as quickly as possible, but always make sure you have an emergency fund for life's little Murphy issues, so that you have something set aside for emergencies. Columbus, OH is a great town, I am jealous!

Best of luck to you,
Liz
  • August 04 2013
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This sounds like a situation that owning is better than renting.  I base this mostly on the idea that you plan to stay where you are for a long term.  This means you will have a long term to take advantages of many of the financial benefits of ownership like tax advantages and the potential for market appreciation.  Ultimately rent vs buy boils down to: which will cost me less?  You could probably find a place to rent for the same payment per month, but would be building no equity, nor have any tax advantages.

I would say stay with what you have for the length of term you plan to stay.
  • August 04 2013
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