Top 6 Reasons Why You Should Buy Instead of Rent?

Top 6 Reasons Why You Should Buy Instead of Rent?

 

1. Rent is increasing everywhere. No matter where you live, the cost to rent a place is constantly increasing. In many cases, your rent payment could be the same or even more than a mortgage payment. When you get a fixed-rate mortgage, your monthly payment will never change, which is great in a rental market that is getting more expensive each year. These increasing payments are just one reason you should consider buying a home instead of continuously renting.

 

2. Owning a home is a long-term investment. Imagine if you spend 30 years renting. At the end of that 30 years, you would have nothing to show for all the money you had been paying all those years. Now imagine if that whole 30 years you instead were putting that money towards your mortgage. At the end of that 30 years, you would own your home and could sell it to make a profit. This is a perfect example of why owning a home is an investment in your future. 

 

3. As property values rise, so does your equity. Over the past several years, home values have been on the rise, and are expected to continue in the coming years. This means that all the money you have been paying towards your mortgage will provide a significant return when you finally decide to sell that home. Each mortgage payment will pay off a portion of your loan, giving you equity over time. 

 

4. Owning a home comes with tax deductions. Everyone loves when they can save money on taxes, so here are a few ways that owning a home can help you do that. As a homeowner, when you itemize your deductions, you can reduce your taxable income by deducting interest paid on your mortgage. You can also do the same thing with the property taxes that you pay. Another great benefit is that if you live in your home as your primary residence for at least 2 years, and then you sell your home for a profit, you will not be taxed on the profit that you make (some exclusions apply; please consult a tax preparer).

 

5. Owning your own home creates housing security. One of the biggest stressors about renting is knowing what you will do at the end of each lease. Sometimes renters will sell the property and then the new owner will not continue to rent the property out, causing you to have to find a new home. To avoid ever worrying about if you will have a place to live at the end of your next lease, buy a home! By doing this, you know where you will be until you decide it is time to move on to your next home.

 

6. You can personalize the home you own. Have you ever rented a place that had restrictions on what you could put on the walls or have in your backyard? Well, one of the best things about owning your home is having the freedom to make all the changes and decorate however you would like. Want new light fixtures? Looking to have hardwood instead of carpet? These home improvements not only are allowed when you own a home, but they also can increase value!