Why Own?

Owning Is an Investment
When you rent a home or apartment, your rent can be as high or higher than a mortgage payment. Plus, the money you pay as rent is an expense. You have nothing to show for your payments.

On the other hand, owning a home is an investment that grows in value. As you make mortgage payments and the value of your property increases, your ownership (or equity) increases. You can use your equity to get money-saving home equity loans or as a down payment on your next home.

Owning Has Tax Advantages
Rent is generally not tax-deductible, but mortgage interest (including points) on your primary residence is. The mortgage interest deduction can significantly reduce your income taxes. (Go to the IRS website or the Oregon Department of Revenue website for more information.)

Stable Payments
Rent typically rises each time your lease renews – eating much of any annual salary increase. Your payments won't change at all with a Fixed-Rate Mortgage, and won't change for the first three to ten years with a Fixed/Adjustable Mortgage. As your income increases, your payments become more affordable. Property taxes and homeowners' insurance related to a home typically increase as your property value rises, but usually not as fast as rent payments.

Pride of Ownership
When you own your home, you have the freedom to change and decorate it to suit you. That's often not true when you rent. Also some home improvements can increase the value of your home so you will get more when and if you sell it.

Shouldn’t I Keep Renting Until Prices Go Even Lower?

The best way to “play it safe” is to actually buy a home. Here’s why: studies show that owning a home is the best way to build household wealth. The sooner a person owns a home, the faster they begin to build up equity and wealth.

When you buy a home, you are also purchasing price stability, knowing that you will pay the same monthly payment for the life of your 30-year, fixed-rate mortgage.

Now consider the current rental market. While home prices have been moderating, rents continue to rise. Where is the economic security in not knowing how much your rent will increase in the next three years? You don’t receive any tax benefits from paying rent, nor do you accumulate any price appreciation, as you would if you owned a home of your own.

All of the economic fundamentals show that this is a good time to buy a home. And continuing strength in rental demand signals that there is upward pressure on rental apartments. The real risk isn’t in buying a home, it’s continuing to rent.

For a detailed cost analysis of renting vs. owning, click here for an online calculator.