Is renting vs buying a home currently a dilemma you are trying to navigate? The Eric Craig Real Estate Team is available to help right now! Our motto: Clients come first! is actually a statement of our personal goal. Everyday we help clients with difficult decisions. Perhaps today, you should give us a call to help you decide whether renting vs buying is best to fit your needs.
Buying vs. renting is a hot topic for many people. Considering the current real estate conditions, this is something you should give a thought before you make a final decision. So, renting vs buying – which is better? What is the right property type? Any informed investor will tell you that buying a home is considered a hallmark of the American dream. It’s a milestone that offers a sense of pride and accomplishment.
Let’s look at the benefits that come with buying a home:
- Build equity
- Level mortgage payment
- Tax advantage potential
- OK to make changes to the property
- Single family vs multi-family living
Read on for help with your decision.
Helps you build equity
If you want an opportunity to build wealth, buy a home. In a few years to come, you want to be worth more than you are today. This is not a foolproof investment – but it could pay off big time many years to come. Depending on your investment needs, you can decide to sell the home or pass on the value to your loved ones.
The key to building personal wealth is choosing the right location and maintaining the property. When you rent a home, this benefit is passed to the landlords. Plus, the monthly payments you make for your mortgage are always lower than paying rent for a comparable property. The fastest ways to improve your home equity are:
- Making a larger down payment
- Prioritize to paying your mortgage faster
- Buy a lower-priced home
- Improve your home to increase value
Your home’s mortgage won’t increase
With a fixed interest rate, your mortgage payments are always predictable and will remain stable for many years. However, your landlord can increase your rent at the end of the lease period. So, rather than stress yourself on the fluctuating rent payments, you can create a strong financial budget by owning a house. And there’s no risk that the landlord will kick you out when he needs to sell a home. You can connect with a lender – Click Here
Owning a home provides tax advantages
If you’re a homeowner, you may have the option of deducting the paid monthly interest from the tax returns. Anyone who understands the benefits of owning a home will tell you that homeowners are sometimes allowed to deduct taxes every year. This can add up to a huge tax savings. Of course, you may want to discuss with your accountant how owning a home will impact your tax situation.
Freedom to make changes
Homeownership gives the flexibility of making some changes. If you rent, you can’t even make the simplest change like painting a wall. Do you get the picture? When you buy a home, you can decide to do a complete kitchen remodel or any other change you see fit.
Single-family living vs. multi-family living
If you buy a multi-family property, you’ll realize some value based on the income they produce. Additionally, you can live there, too. On the other hand, a single-family unit gives a higher value-to-rent ratio for most markets. Whether you go for single or multi-family living, buying is the most viable option.
Other benefits of owning a home are:
- The down payments can be as low as zero dollars
- You can get favorable mortgage rates
- Can bring in extra income if you rent out a room
- Gives better certainty of tenure
Even though it may feel a bit overwhelming to begin the process of buying a home, the many benefits make the effort worthwhile. Eric Craig Real Estate Team will help you navigate what may seem like a difficult choice.