If you’re single or you’ve spent a while living on your own, the idea of buying a home may seem pretty far off; however, if you’re part of a young couple who’s sharing a home, you have the benefit of being able to pool your finances to manage the costs of home ownership. Yes, some people are perfectly comfortable renting, but if you’re like 65% of American who already own a home, then you’re looking to reap the rewards of stability and security.
The following are some main reasons why you should consider buying a home instead of renting:
1.) CONTROL: When renting, you’re obviously living in someone else’s space, which means you’re not always free to change things to fit your likes, wants, and needs. As a homeowner, you have the freedom to modify anything you want, whenever you want. If you’re looking to paint your master bedroom bright green, go for it. If you are tired of the linoleum floors in the kitchen, you’re free to tear it out and install hardwoods.
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Furthermore, and this is probably key, you never have to worry that you’ll find yourself evicted or asked to move if the property owner decides to sell the property.
2.) TAX BENEFITS: While it’s no secret that the added fees of homeownership—mortgage, homeowners insurance, and property taxes—can take quite a bit of money out of your pocket each year, the silver lining is that you may be able to deduct a portion of it from your taxes (as long as you qualify for an amount that’s more than the standard deduction grated by the government).
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3.) FIXED COSTS: Unlike renters, as long as you’ve decided to go with a fixed-rate mortgage, you will never have to worry about being hit with an increase to your monthly payments. When the economy changes, when you’re renting, there’s a strong possibility that your rent will change as well; however, with a fixed-rate mortgage, you can take comfort in the fact that your payments will remain stable.
4.) STABILITY: Once you buy a home, you can establish roots that you wouldn’t be able to lay down if you’re consistently making plans based upon a year-to-year lease. Instead of wondering where you’ll be a few years down the line, you can make a point to join neighborhood groups and get to know other couples or families who also own their homes.
5.) SENSE OF ACCOMPLISHMENT: As one of the biggest purchases you will ever make, owning your home can bring a feeling of accomplishment. Many of us grow up believing in the American dream and at the end of the day, it’s truly a privilege to behold. Once it’s yours, it can bring with it a true sense of pride.
6.) INVESTMENT: Yes, paying rent can be helpful if you’re looking for something easy and temporary; however, if we look at real estate as an investment, the cost of paying over a long period of time generally proves to be a pretty poor investment.
As the cost of living rises (as it always does), so too will your rent. On the other hand, if you lock in a solid mortgage at a low interest rate, in many cases your payments will be lower than renting a similar home—even with all of the extra costs added.
Furthermore, if or when you decide you’re ready to sell your home, it’s possible for you to make money from the eventual appreciation in the value of your property—as a renter, this is not an option.
Pam Wright | OnQ Financial | www.onqfinancial.com |404-445-1033
