Top 5 Reasons Why Buying A Home, Rather Than Renting, Makes Sense Today
For most, owning a home is the American dream. Unfortunately, many people who are renting homes, apartments, and townhomes today do not realize that their monthly mortgage payment would likely be less than what they are paying each month in rent.
We talk with people in our community almost every week who are paying $600, $900, and even $1,500 per month and do not realize that the monthly mortgage for a similar home or townhome, would likely be hundreds of dollars less each month -– and there are so many more financial and personal advantages to buying compared to renting.
What are the top five reasons why buying (instead of renting) makes sense?
If you own your own home, you don’t have a landlord. You can customize your home according to your lifestyle. You can make updates or renovate as you please. The place where you live is YOURS. Want to paint your walls pink or ocean blue? You can do that because you are the homeowner! You don’t have that freedom if you’re renting.
Today’s historically low fixed loan interest rates mean that your monthly payment will remain the same for the life of the loan. As your income increases over the years, your payment will stay the same, meaning you will have even more money in your pocket. In contrast, your rent may increase each and every year. As a renter, you have no control over what you pay – except for what your lease stipulates.
3. A “forced” savings plan.
Every month, as you make your mortgage payment, you are also saving money by paying down your loan. Imagine having your home paid for -- and not having a rent or house payment ever again! That is just one of the advantages of home ownership -- you are saving money instead of spending it and never seeing it again. When you pay rent to someone else, you are saving nothing.
Most people who rent aren’t aware of the tax advantages of buying a home. Interest and other expenses, such as property taxes, are deductible, which means that if you’re in the 20% tax bracket, the government is essentially paying for one-fifth of those expenses. More tax deductions mean a larger tax refund, which means even more money in your pocket! Believe it or not, you may not even have to pay taxes on the profit of the sale of your home (see your tax advisor for specific details).
As you pay your monthly mortgage payment, you will begin to build equity in your home (difference between what you owe and what your home is worth). Through equity lines of credit, you can tap into that money to pay for renovations and additions on your home, adding even more value. You can even use some of that equity to pay for college expenses -- or even a family vacation.
If you’re trying to decide whether you should buy or rent, call Landmark Realty Services at 304-842-5298 before you sign another lease. We will take the time to sit down with you, examine your financial situation, and share more information about the financial and personal advantages of owning your own home. We will help you every step of the way!
We love saving people money and helping them to achieve the American dream of home ownership.