For some, owning a home is much more advantageous than renting. The following are some of the top reasons individuals purchase rather than rent.
- You Can Do Anything You Want with the Property
Owning your home allows you much more freedom! You can change your floors from carpet to wood, put in new light fixtures, or even knock down a wall without ever having to consult the “property owner.” Your customization options are almost limitless!
- Appreciation of Value, Including Leverage of Your Built-up Equity
Owning a home provides a much more visual investment opportunity vs. owning stocks as you get the tangible daily perk of living in your investment. Be that as it may, the monetary advantages are likewise noteworthy, and can be more generous than stock dividends. As a home appreciates, it gathers value quicker than most long-term stock would.
- Tax cuts
Homeowners can deduct mortgage interest and property taxes when filing their returns every year. Simply put, this means more money back in your pockets!
- Home Loan Costs Stay the Same as Rents Rise
If you get a fixed-rate mortgage when purchasing your home, your mortgage payment can never change. If you’re a renter unless, in a “rent-controlled” building, your rent is at risk of rising every single year. Since a mortgage is the biggest piece of the pie when it comes to the owner’s housing payment, it creates quite a bit of budget stability. As for additional costs, both a homeowner and renter have insurance, and that fee can change very slightly year over year. While owners do have property tax, keep in mind it’s tax-deductible whereas a renters insurance is not.
- Involuntary Saving
It almost sounds like a bad thing but couldn’t be further from the truth. When a homeowner makes a payment on their mortgage, a part of that is paying down the principal balance each month. This gives you more equity in your home. When you’re a renter, your monthly payment is going straight to a landlord. Obviously, your mortgage payment is required every month just like rent is, but it’s much easier to do when you realize you’re investing in your own home!
If you’re ready to own a home, getting pre-qualified for a mortgage is the first step you need to take. Call one of our local, licensed Loan Officers at Tidewater Mortgage Services, Inc. today!
