Are you still renting? If so, we’ve compiled a few of the top reasons why buying a home may benefit you more than continuing to spend your hard-earned money on monthly rent.
1. Consistent Monthly Payments
Unless you have a rent-controlled living space, you know all too well the agony of rising rental rates. The numbers show that rents have been rising substantially for decade, but if you buy, you can lock in a set monthly payment for 15 to 30 years. Fixed mortgage rates don't go up, even if the cost of everything else does. To protect yourself, Jack Otter, author of Worth It… Not Worth It? suggests making a 20 percent down payment and taking out a 30-year fixed mortgage to lock in today's low interest rates.
2. Homeowners Build Equity
When you purchase a home, your monthly payments build equity, which in turn increases your net worth. As a renter, your monthly payments basically disappear into the void.
3. No landlord can kick you out.
Renters can face an unexpected eviction notice if their landlord suddenly decides to sell the home, rent to someone else, or otherwise end the lease. That's one reason Boston University economics professor Laurence Kotlikoff says that for older people with a fixed income in particular, he recommends homeownership (and a paid-off mortgage). "It's important for older people to be in a home that they own as security against a landlord," he says.
4. Homeowners can take tax deductions.
The chief tax benefit of homeownership is the ability to deduct mortgage interest payments, but the perks don't stop there. Homeowners can also deduct eligible expenses (certain energy-efficient improvements, for example) and in some cases can avoid federal taxes on earnings from the sale of a home.
5. You can ramp up energy efficiency.
Energy-efficient improvements, from adding insulation to upgrading your air conditioning unit, can reduce your monthly utility bill, says Jane Hodges, author of the new book Rent Vs. Own. While renters can make plenty of green improvements on their own, from unplugging appliances to turning off lights, homeowners can make bigger changes, such as adding solar panels or installing an energy-efficient roof.
6. More Flexibility
As a renter, you have limited options when it comes to tailoring your space to your needs and preferences. However, when you buy a home, you can make all the design changes and upgrades you’d like, the possibilities are endless!
Buying a property as opposing to renting has long-term perks that can enhance your lifestyle. To learn more about how you can take advantage of homeownership, contact me today...let's chat about your future homeownwership..
Source: Keeping Current Matters