When military relocation takes you to a new place where you have decided to live off base, you must decide whether to rent or buy a home. There are benefits and drawbacks associated with both options.
Renting offers flexibility, but there may be drawbacks:
- If you rent, it is easier to pick up and move.
- There are no home maintenance expenses or responsibilities required. Just call the landlord.
- Like living with on-base rules and restrictions, there are rental contract rules and restrictions.
- Although leases are for a fixed period, rent increases are almost guaranteed at the end of the fixed period.
- Keep in mind that when you rent there are no tax advantages and no chance to build equity.
What about buying?
- You may be able to buy a bigger home than you can rent for the same monthly payment.
- You can decorate and remodel whenever and however you like with no one looking over your shoulder.
- There may be rules imposed by local subdivisions and neighborhood covenants, but these are generally less restrictive than base housing rules or rental requirements.
- If VA financing is available and you qualify, you may be eligible for a low down payment and other benefits.
Don’t forget the biggest financial advantages to buying a home – tax deductions (mortgage interest and property taxes) and the opportunity to build equity.
To learn more, contact Infinity Realty Guam today. Our REALTORS® have extensive knowledge when it comes to PCS and will provide quality service you deserve. Click here.
DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with a professional in their respective expertise for complete details.