We understand that the market is competitive for buyers right now. But don’t let the competition stop you from realizing your home ownership dreams. There are many distinct advantages to owning a home instead of renting. Remembering these benefits can help give you the confidence to pursue the purchase of a home in today’s market. Let’s take a closer look.
Owning is an excellent long-term investment
When you rent, you pay money to your landlord and never see it again. But when you make your mortgage payments, you are investing in yourself. Once your mortgage is paid off, you will have a house that you can sell. Over the years, your home will appreciate in value — it’s like a forced savings account. That makes real estate an excellent long-term investment.
Interest rates are historically low
Because of the pandemic, interest rates are at historic lows. You can get a great deal on a home loan with low interest rates if you qualify. Locking into a low 30-year rate can save you hundreds of dollars a month for many, many years to come.
You build equity as home prices rise
While the real estate market may fluctuate in the short term, in the long term real estate always increases in value. As you pay down your mortgage and as home prices rise, you build equity. You can then use that equity in a variety of ways, whether it’s funding a down payment on your next home or using it to make improvements on your current home.
Homeowners get certain tax breaks that aren’t available to renters. These include mortgage interest deductions and property tax deductions. This can lead to significant savings in your tax bill each year.
Steady monthly payments
Unless you live in a rent-controlled property, you don’t know how much your rent will increase from year to year. Your landlord can increase your monthly rent whenever your lease expires. But when you own your home, you know what to expect each month for the payment – now and 30 years from now.
Zero down payments available
One of the obstacles that may be preventing you from considering homeownership is saving for a down payment. But did you know that some home loans require no down payment whatsoever? There are many loan programs out there — especially for first-time buyers — that let you pay nothing for your down payment if you meet certain requirements.
Financial benefits aren’t the only advantages to owning vs. renting a home. When you rent, you may have little privacy, especially if you live in an apartment building with thin walls. But when you own your home, you can enjoy a greater sense of privacy. Maybe your new home has a big yard or is built with higher-quality materials that let you feel like you have your own private space.
You can make it your own
Finally, one of the biggest advantages of owning vs. renting is having the freedom to make it your own. You don’t have to worry about getting permission from your landlord to paint, plant a garden, or even hang pictures on the walls. Your space can truly reflect your personal tastes and style, turning a simple house into a home.
Also read: Tips for First-Time Home Buyers
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