Renting a home is a good option for some but buying a home just might be the best thing. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks. There are some big advantages though to buying a home that will improve your finances over the long run.
Did you know that when you rent a home, you help someone else build equity? Any improvement that you make to the property puts money back in the landlord’s pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property. When you buy a home, you have the chance to build equity of your own, which you can realize when you sell or refinance the property.
When you rent a property, the rent will likely increase periodically over time, often once a year. When you purchase a home, often a buyer will take out a 30 Year Fixed mortgage so that the mortgage payment will be fixed over the entire time. The real estate taxes and homeowner’s insurance will increase over time on a purchase but nowhere near the rate that rent will increase. Over time it is much less expensive each month to own than to rent because of this disparity.
Save On Taxes
When you buy a home, you can save money on your income taxes with a few different types of deductions. The federal government allows homeowners to make deductions on their return such as mortgage interest as well as money spent on energy saving renovations and appliances.
Add Your Personal Touch
As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first. Buying a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.
Now that you know the benefits of buying a home and how it is an investment in your future, turn to a real estate professional for assistance!