Why Rent When You Can Buy?
April 23, 2022
This is a question that adults debate before choosing to purchase their first home. There’s no doubt that this is one of the biggest decisions that you will make. Homeownership has often been characterized as a pinnacle of personal achievement; it’s a sign that one has “made it” and reached their goals. It’s a dream for many people. Preparation and timing are important to set yourself up for homeownership success. While renting may have its benefits for certain scenarios, owning a home is worth every penny.The Top Benefit of Homeownership
Investing in a home is investing in your future. When renting, think of it as investing in your landlord’s retirement plan. Why not invest in your own? You could be paying the same amount or less for your monthly mortgage.
As you pay your monthly mortgage (as you would anyway with rent each month), you’re building equity. With each month that passes and the dollars spent on smart renovations, the value of your home potentially increases. By the time you’re ready to sell, recognize the benefit of ownership.Tax Benefits
Did you know there are multiple tax benefits you could capitalize on when buying, owning, remodeling, or selling your home? It’s worth speaking to your accountant about to understand which options are available to you. There are mortgage points, mortgage interest deductions, home equity debt, medically necessary improvement, and so many more ways that could save you money.BUT It’s Not All About the Money
Money is typically the number one concern when buying your first home, but it’s not the only reason to buy a home. With every payment, you’re inching closer to owning a home – your OWN home. With that, the pride and satisfaction of achieving this goal are incomparable. Along the way, you have the freedom to express yourself creatively; it’s just as satisfying to decorate and design your home the way you’d like to live. This stable environment you’ve created for yourself, your family, and your friends can overall improve your everyday life and provide a healthy mentality. Be proud to be a homeowner!Pros and Cons of Buying a Home
– Building equity/ Home’s value increases
– With every payment, you’re closer to owning the home
– Creativity to decorate
– Significant tax advantages
– Similar price to current rent
– The pride and satisfaction of owning a home
– Less flexibility
– Closing costs can be prohibitive
Should I Keep Renting?
We believe that owning a home is highly valuable unto itself; yet, we recognize it’s not for everyone. Virtually all buyers have first considered the merits of renting a home as opposed to buying. There are reasons to rent a home, so it’s up to you to decide which is the better fit for your needs.
Before you decide, there are some important questions you should ask yourself first.
- Where am I in my career?
- Is my income level likely to change?
- Do I anticipate needing to move again soon?
- How long do I plan on staying in the area?
- Do I need time to improve my credit rating?
- Do I want to be responsible for the maintenance of my home?
There are some perks to renting: the flexibility to pick up and move whenever necessary, and low to no expectation to provide expenses towards fixing or upkeep of the property. However, you may have short-term neighbors, and the cost of your rent may increase at each lease renewal.Pros and Cons of Renting an Apartment
– Paying off student debt or current loans before buying
– Freedom to move frequently
– No maintenance expenses
– No equity built
– Landlord can sell or decide to not rent anymore
– Landlord can raise the rent at end of the lease term
– No tax Incentives
– Restrictions on painting, decorating, pets, and more!
– Paying for your landlord’s American Dream
When the Timing is Right to Rent
Depending on where you are financially and the lifestyle you prefer to live, the odds are purchasing a home is the right choice. The next steps are to prepare to move forward with your decision. Speak to your trusted lender to be pre-approved for a home mortgage. We recommend two local, preferred lenders that would love to help you find the best loan agreement option for you. We work with our lenders to discover the ideal, affordable payment options for your customers. They’re highly educated in the new construction process and finding you the right loan. Even if you’re unsure at this point, take the time to research and speak to professionals (accountants, realtors, lenders, banks) who can help you decide and works towards the “American Dream.”
At Rouse Chamberlin Homes, we would be honored to share this excitement and experience with you! Contact us to inquire about how we can further assist you and to ask any questions.