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Buying vs. Renting:
4 Common Myths

Should you buy a home or rent? It’s a question many people wrestle with at some point in their lives. As you weigh the pros and cons of each, don’t be fooled by these four buying vs. renting myths.

MYTH 1:

If it’s a buyer’s market, you should buy now.

You should never purchase a home based solely on the market. Instead, let your own financial standing be your guide. That means figuring out how much you can afford to spend each month on housing and sticking to that number. Remember, the cost to buy a home is just the beginning of your expenses as a homeowner. You’ll also need to pay for home insurance as well as general upkeep. These extra expenses add up quickly, so the last thing you want is to overextend on the price of your home. Read more about the importance of your financial health.

MYTH 2:

The tax advantages from owning a home are so great that you should always buy.

Due to recent changes in tax laws, the tax advantages of owning a home aren’t as helpful as they once were. For example, there’s a limit on the amount of state and local taxes you can deduct on your federal return. Please remember that tax laws differ by state, as well as the tax bracket you’re in, so check with your tax professional to help decide what makes sense for you.

MYTH 3:

You're throwing money away by renting.

Not true. At the end of the day, renters are satisfying their need for a comfortable, safe roof over their heads just like homeowners. So how can that be throwing money away? Plus, renters benefit from several key advantages:
  • Less hassle – You don’t have to maintain the apartment building and surrounding property.
  • Greater flexibility – You can change apartments much more quickly than you can change homes. Plus, it’s easier to travel if you rent.
  • More financial freedom – You don’t have to spend a large lump sum on a down payment or pay property taxes. As a result, you can invest that money in other ways.

MYTH 4:

You need perfect credit to buy a home.

Actually you don’t need perfect credit history to get a mortgage—but strong credit does help. A high score can improve your loan approval chances and interest rate. If you don’t have strong credit, all is not lost though. Here are some ways to improve your credit:

  • Pay your bills on time
  • Don’t max out your credit cards
  • Correct any errors on your credit report
  • Keep your debt-to-income ratio below 20 percent

The links to third party websites are provided as a convenience and are for informational purposes only; they do not constitute an endorsement of any products, services or opinions contained therein. Plymouth Rock is not responsible for the accuracy or completeness of the content on these sites. 

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Plymouth Rock Assurance® and Plymouth Rock® are brand names and service marks used by separate underwriting, managed insurance, and management companies that offer property and casualty insurance in multiple states pursuant to licensing arrangements. In CT, insurance is underwritten by Plymouth Rock Assurance Corporation, Palisades Insurance Company, and Plymouth Rock Home Assurance Corporation. In MA, insurance is underwritten by Plymouth Rock Assurance Corporation, Pilgrim Insurance Company, Plymouth Rock Home Assurance Corporation, Bunker Hill Insurance Casualty Company, Bunker Hill Preferred Insurance Company, Bunker Hill Property Insurance Company, and Bunker Hill Insurance Company. In NH, insurance is underwritten by Mt. Washington Assurance Corporation. In NJ, insurance is underwritten by Palisades Safety and Insurance Association, Palisades Insurance Company, High Point Property and Casualty Insurance Company, High Point Safety and Insurance Company, High Point Preferred Insurance Company, Teachers Auto Insurance Company of New Jersey, Twin Lights Insurance Company, Rider Insurance Company, and Palisades Property and Casualty Insurance Company. In NY, insurance is underwritten by Plymouth Rock Assurance Preferred Corporation, Plymouth Rock Assurance Corporation of New York, Palisades Insurance Company, and Palisades Property and Casualty Insurance Company. In PA, insurance is underwritten by Plymouth Rock Assurance Preferred Corporation, Palisades Insurance Company, High Point Preferred Insurance Company, Palisades Property and Casualty Insurance Company, and Rider Insurance Company. Each underwriting and managed insurance company is a separate legal entity that is financially responsible only for its own insurance products. Actual coverage is subject to the language of the policies as issued by each separate company. Some discounts, coverages, payment plans, features and benefits are not available in all states and companies.