We’ve all heard: “If you can rent, you can buy.” According to the Bureau of Labor Statistics, on average, homeowners spend less on mortgage interest and charges than renters spend on rent. You should weigh the pros and cons of each to decide if homeownership is right for you. Knowing whether to rent or buy depends on your specific situation. Looking to analyze your options? Here are a few reasons to consider buying:
- Equity. When you pay your monthly mortgage payment, you add equity to your home. Each time you make a payment, you increase the degree of ownership. However, when you rent, this is not the case. You are adding equity to your landlord’s property.
- Creative Control. Many landlords have rules about painting walls and using nails to hang up pictures, among other things. You don’t always have the amenities you desire or the ability to personalize your space in a meaningful way. But with homeownership comes freedom. Want a home with an outdoor fire pit? Build one! Like to change things up? Feel free to repaint your living room once a year if you wish. Go crazy with wall art. The world (and your house) is your oyster.
- Maintenance. Many times when you rent, part of your monthly fees are reserved for maintenance. Your landlord decides what needs to be fixed or updated – by whom and when. When you own a home, you are in control. You can save money by doing it yourself or can hire a contractor to help you. You set the timeline and prioritize what’s important. Want to update your bathroom or kitchen, replace light fixtures or stain your deck? Owning a home gives you the authority to so.
- Tax Deductions. Homeowners have tax benefits* renters don’t. There are a number of tax deductions that come with homeownership: interest, property taxes, moving costs, home office, home improvements, private mortgage insurance, and more. These deductions can put money back in your pocket at tax time. Renters are not eligible for these, but their landlords are!
Homeownership is a large part of the American dream. A home is not only a good investment that brings with it many benefits. If you are interested in purchasing a home, contact a member of our Housing Buzz Team today to analyze your options!
*The interest on the portion of the credit extension that is greater than the FMV of the dwelling is not tax deductible for Federal income tax purposes. Consult a tax adviser for further information.