Every month you pay rent, it just goes into your landlord’s pocket. When you own a home, your mortgage payment goes toward building equity in a home. A home, then, should be considered an investment as much as it’s a place to live. Equity has other financial advantages too. The more equity you have, the more credit you can access—and if an emergency occurs, you’ll be able to refinance by borrowing against it.
For most people, a home isn’t just a shelter to sleep in: It’s a haven from the stresses of work and life. The ability to customize yours by painting, making renovations, and landscaping is essential to making a home your own. When you rent, you’re often restricted to your landlord’s rules, and any gardening or house projects you undertake are investments lost as soon as you move. Owning a home grants you the full liberty to make your home your home.
3. Tax Benefits
With rent payments, you gain nothing on your taxes. The money spent still counts as income you have to report. With a mortgage, you get tax breaks. Both mortgage interest and property taxes are deductible. If you work from home, you can write off your office space and receive more deductions. Even better, when many home owners sell, they can avoid capitol gains taxes if they meet certain IRS conditions.
Though it’s usually cited as one of the perks of renting, having sole authority to take charge of repairs is actually a benefit of home ownership. Leaky roofs and broken toilet seats are a pain to replace, but they’re worse when you have to wait for your landlord to come fix them on his/her schedule. When you’re in charge of maintenance, you can have it done on your time—and you can choose the replacement appliances or materials that you want.
Time and time again, studies demonstrate how much cheaper mortgage payments are than renting a home of a comparable size. Landlords make money by charging more for rent, so if you can afford the down payment, you’ll save on home ownership in the long run.
6. Improving Market
Investors predict that the housing market is only going to continue to strengthen in the coming years. With home values continuing to rise, if you’re deliberating between owning and renting, now is the time to invest in a home. It’s also the best time to switch from renting. The National Association of Realtors recently found that 51% of renters would qualify for a mortgage if they applied today.
If you’re currently planning to purchase, refinance, or learn more about mortgage rates, simply fill out our Fast Response form. Our experienced mortgage professionals would love to sit down and discuss your needs. We look forward to hearing from you!
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