Ahhh…to be able to say, “Home Sweet Home!” That is what we all are wanting…right? Financially and from a lifestyle perspective, owning a home makes more sense than renting. Here are just four of the reasons why buying is better than renting…
1) Paying a mortgage naturally builds equity over time
With home ownership, building equity essentially happens each time you make your mortgage payment. Over time, your home will naturally have a profit that is much greater than what you owe. This will mean money that comes back to YOU when you decide to sell, or gives value on your financial statement over time. You are able to use the equity on your home as a personal loan for some extra cash if needed for emergencies.
Most people would rather see their home equity increase instead of paying rent so someone else can see their equity grow. You are going to have to pay for housing anyway, so why not make it a payment for YOU? You are either going to have to pay your own mortgage or someone else’s. Which would you prefer?
Owning a home allows you to design and tailor anything you’d like. It is YOUR home and you can decide what to do with it. You can display your favorite photos (even if it means putting holes in the wall), put a back splash in over the counter tops in the kitchen or even change your carpet to hardwood floors without any extra fees.
When you own, you can repair, replace and upgrade your appliances as preferred.
Updating the master bathroom? Not a problem! You can change out the shower head or faucet, put in tiles to suit your style or do a major renovation. Need more space? You can expand or get rid of a wall to create open space or more useful space. Certainly, all this means you need room in your personal budget, but at least it’s possible unlike renting an apartment.
3) Tax benefits
Did you know part of your mortgage can be tax deductible?! Well, it’s true! Property taxes, interest you pay on your home, and much more ALL can be deducted from your taxes.
Even though owning a home comes with repair costs and maintenance, at least you can deduct a portion from your taxes…that is a benefit that renters do NOT have!
4) Your mortgage rate will stay the same, rent will rise
When you own a home and get a FIXED rate, your payment will stay the same for years to come. If you are renting, you will never be too sure if your rent will go up each year when you renew your lease.
Owning a home allows you to have budget stability. Since you will always know what your mortgage payment is, it allows you to save and budget what you can afford, etc.
Currently, the mortgage rates THIS WEEK for a 30-year fixed rate is as low as 2.875%. This information was courtesy of Michael Pennington with RMS Mortgage. These rates are some of the lowest they’ve seen in years. NOW Is the time to buy.
To get started on your home buying journey, call us at 803.804.2652, or contact us through our contact form.