Are you looking for a change of scenery in terms of where you live? Are you asking yourself, “Should I rent or buy a house?” While renting is a great option for some, buying a house can be an even better option for many. There are many reasons to buy a home instead of renting.
Rent Payments Continue to Increase
The rental market is one in which costs consistently rise, and sometimes at alarming rates. Research from the Urban Institute shows rent in many markets has grown much faster than median incomes.
This means that a high rent price is often comparable to simply paying a monthly mortgage on a home.
You’re Making an Investment
The biggest argument to be made is that buying a home and putting money in it is making a long-term investment.
When you rent, you pay a landlord and that money doesn’t go into anything you own. Mortgage payments go into a piece of property that’s actually yours, and one you can make improvements on so that if you decide one day to leave, the value of said property will have gone up.
Gain Equity as Time Goes On
Home values are on the rise, and that trend is expected to stick. As mentioned when talking about a long-term investment, increasing your property value will provide significant returns in the long run.
Every time you make a mortgage payment, a portion of that payment pays your loan down each month, giving you more equity in the home.
Interest Rates are Currently Low
Given the state of the housing market, we are seeing some of the lowest interest rates in a long time. What may seem like a slight difference in your mortgage rate can make a huge difference in your monthly payment. A low 30-year mortgage rate could save you hundreds of dollars each month for decades to come.
There’s Opportunity for Extra Income
If you find yourself with an extra room or piece of your property that can be utilized as another living space, you may want to consider renting that space out to tenants. You can do this on either a lease basis or use sites like Airbnb to list your home as a place to stay.
Tax Deductions
If you think more along the lines of short-term benefits, consider the tax deductions you’ll receive. You can deduct mortgage interest and property taxes from your federal income tax, as well as many states’ income taxes.
Living Security
When you rent you are at the behest of another person, your landlord. Who knows when the landlord might decide to sell the property or choose not to renew your lease? Owning a home is a guarantee of a place to live.
It’s Yours to Do What You Want
Paint a room black. Screw a pot and pan holder into the kitchen ceiling. Play drums at 3 in the morning – the possibilities are endless when you own a home!
You are no longer beholden to a landlord and set rules, and can truly make your living space what it’s meant to be: yours.
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