You Put Down Roots When You Buy a Home
Although it's better to rent if you won't be staying long or if your plans are uncertain, that kind of flexibility comes with a price. It's harder to feel established in a neighborhood if you aren't a homeowner.
Home Ownership Is A Built-In Savings Account
When you buy a home, you enroll in a forced savings plan. No matter how tight your budget may be, you find the money to make your monthly mortgage payment.
Buying a Home Has Big Tax Advantages
When you decide to buy a home, you can count on your uncle's support — Uncle Sam, that is. The significant tax benefits of buying rather than renting may be reason enough to invest. Homeowners can deduct mortgage interest on their federal income taxes.
Paying A Fixed Mortgage Stabilizes Your Budget
Even with rent control, there are exceptions and you can't count on your rent remaining stable. If you buy a home and take out a fixed rate mortgage, your house payment stays the same for the life of the loan, whether it's 15 or 30 years.
Buying a Home Costs Less than Renting Over Time
While your mortgage payment may initially be more than you'd pay in rent, you'll spend less over the life of the loan if you buy. Rents may rise over time, changing the equation. Also, given the tax benefits of home ownership, your true out-of-pocket costs from day one can be less than if you rent.
When you factor in the possibility that real estate values often go up over the years, home ownership looks even better. The cherry on top is that when your mortgage is paid off, you can stop making payments but you keep the house.
If you’re ready to stop paying your landlord and start building your future, then schedule a 15-minute mortgage consultation with me and I can walk you through the process.