Buying a home can be very intimidating and the no strings attached feeling renting can give someone sometimes seems like the easier option. But that isn’t always the case. There are many situations where it makes more sense to purchase your home instead of continuing to rent it year after year. There are alot of benefits one can take advantage of when owning their own home and very little you can do when you decide to rent.
We have put together a few perks of owning your own home and why you would want to own instead of throwing away your money renting.
- It is YOUR home
This means that you can really do whatever you want to do to your home. If you want to update a bathroom, you can do it, if you want to paint your guest room walls, you can do it without having to paint it back when you move out. You are able to add in built-ins, change light fixtures, update windows and so much more. It is your home and you are allowed to make changes as you see fit.
- Investing in property
When you purchase a home, you are investing in property in hopes that it will appreciate over time. Purchasing is a great long term investment, especially if you are planning to stay up for a long period of time. As you continue to pay down your home mortgage, you build equity which is an asset that is part of your net worth. You can use this equity to leverage other aspects of your life, like purchasing a second home or even a car.
- Making better use of your money
When you own your home, you will pay a little bit of interest, but you are saving your money in the long run. When you rent, you give your landlord the money and never see it again. When you own, there is a good chance that you will see your payments again once you sell, especially if your property appreciates.
When you own you also have a better idea of how much you will be expected to pay when it comes to your monthly mortgage. When you rent, your landlord may increase prices every year and expect you to be able to pay at an increased rate.
- Tax Benefits
There are tax benefits for those who have purchased a home instead of renting, especially if you are working from home right now. You can write off your home office if you are still working from home. You can get a mortgage interest deduction, which allows you to deduce the interest you pay on your mortgage to buy, build, or renovate your main or second home. You can also get a mortgage insurance deduction, which can be beneficial for those who pay mortgage insurance. Make sure you speak with your tax specialist to understand the exact benefits you can receive for owning a home.
Pros and cons to renting
Of course, owning a home is not for everyone and in some cases, renting makes more sense. If you are constantly on the move and not tied down to one city or state, renting definitely makes sense for you. When you rent, you are not responsible for your own repairs, you don’t have to pay property taxes, but you do have the uncertainty of your landlord potentially kicking you out when they are ready to sell. Sometimes this happens with very little notice, whereas when you own a home, you can create your own timeline when ready to move.
If you are looking to make the leap from renting to owning your home, we want to make it as easy as possible! Contact us today to get started!