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Buying verses Renting

Have more questions about whether to buy or rent, why buy a home in Indianapolis or Carpenter Realtors after reviewing this? Ask us!


One of the most important, and expensive decisions you’ll make in your life is buying a home.


Why would you buy a home in Indianapolis? After all, apartment or rental living has its benefits. No maintenance worries, few insurance concerns along with the ability to pick up and move with little hassle. But maybe the time has come and you realize that buying a home will improve your financial stability.


Sure, renting has its benefits

However, over the long term, the advantages for buying far outweigh the disadvantages.

Let’s take a look at the tax advantages:
Federal Income Tax savings is one of the greatest measurable benefits of homeownership. The approximate monthly house payment would be:

Federal Income Tax savings result from these two items:


How much savings is that in real DOLLARS?

A homeowner (married filing jointly) with taxable income over $45,200 would be in the 27.5% tax bracket (3) (the second lowest bracket) and would save $2,420.00 per year or $202.00 per month!


What about the advantages to your credit rating?

Owning a home is the most prudent investment you can make. Which might explain why the mortgage companies take so much effort when reviewing your loan application! But once you’ve purchased and make your payments on time, you’ll receive long-term benefits as you prove your credit-worthiness.


And about that equity growth. This is the easiest to explain.

Home values are one of the very few investments you can make that have shown consistent, long-term growth. Even conservative analysts suggest that a 5% annual increase in value can be expected with home ownership. And you get to live in your investment, to boot!


Plus, Indianapolis homeowners have found that the local market is less subject to the highs and lows of real estate booms. This makes your investment in Indianapolis real estate a much more stable investment.


So – you’ve decided that it’s time to buy a home. Now … start saving. The larger your down payment, the better terms you’ll receive on your mortgage. Save by setting aside at least 10 percent of your income for a down payment.


Finally, don’t make purchasing a home a last-minute decision. Plan ahead and it will pay off nicely for you in the future.

The BLC® listing information is provided by the Metropolitan Indianapolis Board of REALTORS® from a copyrighted compilation of listings. The compilation of listings and each individual listing are © 2014 Metropolitan Indianapolis Board of REALTORS® All Rights Reserved.

The information provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All properties are subject to prior sale or withdrawal. All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.