It’s no surprise that buying a home is a big decision to make, but how do you know if it is the right decision for you? There are pros and cons to both owning and renting. We all know that finances play a big role in the decision-making process. In most situations, it appears that renting is most definitely the more affordable option. However, the decision between renting and buying must also take into account what your lifestyle choices are.
Here are some things to consider when deciding whether you should own or rent your home.
Owning Is an Investment
While buying a home is expensive, it’s important to remember all that the expense pays for. You have a place that you and your family can call home — a place to establish your roots and foundations.
Not only is buying a home an investment in your family, but it is an investment in terms of money as well. As home values continue to increase, there is a possibility that a current interest rate remains low compared to the past interest rates. Reach out to Kyle McCray to learn more about how you can use this to save money.
Your Home, Your Way
One of the joys of owning a home is that you get to decide what you want to do with it. You gain the opportunity to customize it and make it your own. You get to decide everything from decorative features to appliances, all without worrying about going through a landlord. Unlike when you are renting, you can make as many changes as you’d like.
This is also true when there are things in your home that are in need of a repair. When you are the owner of the property, you’ll have much more freedom to get things done the way you want and in the timeframe you want.
Pay Less When You Own
If you’ve ever rented, you’ve most likely gone through the experience of being told your rent is going to increase. With a mortgage payment, you pay a fixed amount every month that doesn’t fluctuate. Of course, you can try to refinance your mortgage to get a lower monthly payment, but your payment will not go up. With every mortgage payment that you make, you are investing a little more into the property, while paying less in interest.
You are also building equity with every mortgage payment that you make. Equity is the amount of your home that you actually own. There are two ways that you can build equity on a house — either through an increase in property value or a decrease in debt. You can increase your property value through routine upkeep and home improvements or if you’re lucky enough to see home values in your marketing increase. You can decrease your debt by making monthly payments, choosing shorter mortgage terms or making extra payments. By building your equity, you’ll provide yourself with a great asset for any financial need.
Owning Comes With Tax Benefits
Who doesn’t like tax benefits? Owning a home can provide you with a yearly deduction for interest and property taxes paid. This usually outweighs any renters property tax refund. If you’ve been forced to work from home during the current pandemic, you can take a tax deduction for that as well.
If you are struggling to decide if owning a home is right for you, I am more than happy to help. Let’s work together to find whether owning or renting a home is the best decision for you!