Everyone agrees that there is no place like home. What remains debatable is whether or not that home should be rented or owned. There are strong arguments for both financing methods but if you remain on the proverbial fence, here are six reasons why you should buy your next home.
Monthly Mortgage Payments Create Equity
When you pay your monthly rent payment, you are essentially paying someone else’s mortgage and you will never see any of that money again. When you pay your monthly mortgage payment, you are paying yourself back by slowly paying down your mortgage loan, creating equity in your home. Equity is the difference between the value of your home and what you owe. If you sell your home down the road, you get to keep equity that you have accumulated after the sale.
You can deduct the interest you pay on your mortgage, your property, and some of the other costs associated with buying a home. Additionally, homeowners can deduct eligible expenses such as energy-efficient improvements. These benefits can significantly reduce your yearly tax bill. Consulting with a tax professional can give you a better idea of how owning a home can help your tax situation.
Similar Monthly Payment Amounts
Many people worry that they won’t be able to afford a monthly mortgage payment. However, what most people don’t realize is that monthly mortgage payments are often same as, if not lower than, their monthly rent payment. Plus, rent payments tend to go up over time while your payments never change with a fixed-rate mortgage. Remember, monthly mortgage payments also contribute to your home’s equity, so it’s a win-win situation.
When you own your own home you can do what you want with it to make it yours. You can paint the walls whatever color you want, plant a garden, add a deck, or remodel the kitchen. The sky is the limit when you own your home.
Owning your own home means you no longer have to worry about your landlord raising rent or selling their property. As long as you make your monthly payments on time, your home is yours to keep until YOU decide to sell it.
Sense of Stability and Community
On average, when a person decides to purchase a home, they will stay in it for about 13 years. This provides homeowners with the opportunity to develop life-long friendships and a sense of belonging within their communities. Renters tend to stay in one place for a couple of years at a time, often less depending on the terms of the lease.
If you are ready to make your next move and buy a home, our home financing calculators can help you understand how much home you can afford. Click here to get started.