Considering a move? We want to talk about the benefits of renting versus owning. There are many reasons to purchase real estate, not just for the idea of homeownership. Buying has many great benefits that extend beyond the initial purchase.
Here are five major benefits to owning a home versus renting:
1. You’re investing and saving for the future.
Not only are you investing in something that’s going to last such as real estate but it’s sort of like a forced savings account since you are putting money back in for yourself each month. You’re constantly gaining equity as inflation is rising and home prices are rising so not only are you paying down your mortgage that your value is increasing each year.
2. You’re going to pay a mortgage whether you rent or buy.
What do you mean by that? Regardless of whether you’re paying your mortgage, you are paying someone’s mortgage even if you rent. Because you’re renting doesn’t mean that you’re not paying a mortgage of some kind. However, you’re not paying your mortgage and that can cost you in the long run. In this case, owning a home is better.
3. You can save money and deduct for tax benefits.
You can deduct your mortgage interest and property taxes from your income making your taxes smaller and getting more back at the end of the year. Being a homeowner provides you with lots of additional tax benefits including any improvements you may make. You just won’t believe all the stuff you can deduct!
4. Being a homeowner means you have the say-so.
There are benefits to renting in that when something breaks you can certainly call your landlord and have them fix it. However, your responsibility is limited which also means that you could be liable for any repairs or changes that you make. You also can be liable for any damage done while you rent the home and that can lead to litigation from lawsuits. Being your own homeowner means that you are the one responsible for repairs, replacements, and any changes you want to make. That’s quite a lot of power and freedom.
5. Owning a home is protection from inflation.
As home prices and rental prices rise so does the inflation rate. Owning a home is always a better choice to guard against that inflation especially if you’re on a 30 year fixed rate home loan. Once you’re locked into that rates regardless of what inflation does your grades and your payment should stay the same.
If all of this sounds like excellent reasons to own a home give us a call today and find out how much home you can afford. We’d love to discuss the right type of loan, down payments and all the options available to you as a New Jersey or Pennsylvania home buyer.