Home loan payments are now often less than rent payments
If you don’t intend to stay in your home long-term, need extra mobility or are unsure about your employment prospects, renting probably makes good sense for you. But if you’re planning to stick around, owning may prove to be more financially rewarding.
Here are 5 good reasons to own a home:
- Mortgage rates are STILL near historic lows
With historically low mortgage rates coupled with low inventory, rents have continued to climb with real estate prices. Owning a home have enabled homeowners to keep up with inflation. Even with smaller down payments, homeowners are able to BETTER control their housing expenses.
- Buying builds equity.
On most home loans, you pay down the principal balance with each payment. This typically starts as low as $100 per month for every $100,000 of loan balance and increases each month through the entire life of the loan.
- Home values rise over time
Increases are not guaranteed in the short term; however, as long as there is inflation, the costs of building a home will increase as well. This in turn will always force home values to rise along with inflation.
- Home ownership often brings tax benefits
Deductions from home mortgage interest and property taxes save many homeowners thousands every year. Others still find taking the standard deduction more beneficial. Always consult your tax pro for advice.
- It’s more than just the money
Families become rooted in a neighborhood, school district and community. Homeowners have the freedom to choose how customize their homes to their desires. Pets are welcomed. Intangibles like these often generate the most valuable returns.
Housing is a precious commodity that we all need every day. It’s your choice to rent or to own, yet buying a home for yourself usually benefits more than buying one for your landlord.
If you’re ready to make that leap to home ownership or to find out more about what it means to own a home, please contact us!