Simple. Smart. Sophisticated. That is the Redwood way.
Renting an apartment may be more advantageous to you than buying a home. Take a look at the comparisons below that highlight the benefits of renting versus buying.
Upfront Costs
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Buying has more upfront costs than the low cost of renting. Renting fees include: process fee, security deposit, and application fee. Buying fees include: down payment, inspection, closing, and initial updates.
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Monthly Costs
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The monthly costs of renting are much lower than the costs of buying. Renting monthly costs are: utilities, water, gas, insurance, and rent.
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Selling/Move-Out Costs
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To move out of an apartment, the only things that you need to pay for are damages and possibly a buy-out fee if you are leaving early. When you are selling your home, you need to pay for the mortgage payoff balance, prepayment penalty, real estate agent commissions, notary fees, escrow fees, title search fees, closing costs/credits to buyer, transfer tax, home warranty, and capital gains tax.
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2018 Tax Law
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- Nearly doubled the standard deduction
- Limited the mortgage interest deduction
- Limited the property tax deduction
- Eliminated the interest deduction on home equity loans
All of which may make renting a better option for some people.Talk to your tax advisor. |
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