3 minute read
Buying a home has long been touted as one of the best investments you can make. After all, it’s the American Dream. But, do you really understand the benefits of buying vs. renting?
From having more privacy (yes, this is a thing) to realizing financial benefits, there are some really strong cases for buying your own home.
Let’s take a look at some of the top reasons our clients have jumped in:
#1. Your home is yours
We’re all too familiar with the design constraints that come with renting a home — you don’t have the opportunity to make improvements, express your personal style, or feel like you’ve really “made a home” when your landlord is in charge.
However, when you buy a home, it’s all yours! Bust out the mint green paint, do the bathroom tile project of your dreams … your home becomes your canvas. What’s more, the improvements that you make can help contribute to your home’s appreciation. That brings us to our next point …
#2. Your home appreciates
When you buy a home, you’re purchasing an asset that, in most cases, will appreciate in value over time. Not only is this a great way to establish a financial foundation, but it also allows you to leverage the cash you’ve invested.
For example, if you purchase a $300,000 home (with a down payment of $30,000) you could see an appreciation of 3% or more each year, which would mean a gain of $9,000 or more each year. And, that’s on top of the $30,000 you invested. You appreciation depends on a number of things, including how long you stay in the house, market conditions, upgrades you make, etc.
#3. Your home has tax benefits, too
In addition to this appreciation, you’ll experience some great tax benefits as a homeowner. For example, homeowners are able to deduct mortgage interest and property taxes each year. This can be a significant tax saving, which often tips the scales in the “buying vs. renting” debate.
#4. Your home’s mortgage doesn’t fluctuate
Unlike rent prices, which your landlord can change whenever your lease expires, your home’s mortgage can be a predictable payment for as long as 30 years. Instead of worrying about fluctuating rent payments — and needing to move because of it — you can create a financial budget knowing exactly how much money you’ll need for housing each month.
This, of course, relies on you selecting a fixed-rate mortgage vs. an adjustable-rate mortgage.
#5. Your home offers privacy
Is there anything worse than your neighbors throwing a party the night of a big exam? Or, that time your neighbors got a new puppy that cried through the night?
Some rental properties are constructed of lesser building materials, which doesn’t offer a great sound barrier. More often than not, buying a home affords you a greater level of privacy thanks to a greater level of workmanship and materials. What’s more — your new home might have a yard or land that acts as a buffer between you and your neighbors.