7 Reasons to Buy Instead of Rent
“Buy a home! Buy a home!” Like most first-time home buyers you’ve heard this advice more than once, from friends, family members, and even coworkers. You may be wondering…Is buying a home the right decision for you? It’s okay to have your doubts, so take a deep breath and relax. The more you know about the benefits of purchasing your own home the less scary the decision will seem. Here are 7 important reasons why you should take the leap and buy a home.
- Tax breaks for homeowners – U.S. Tax Code allows homeowners to deduct the following: interest you pay on your mortgage, your property taxes, and several closings costs involved in buying a home.
- Appreciation – Over the long term most home values will see a rise values. The appreciation of a home will increase depending on several factors. Location is important for access to services like schools, businesses, hospitals, etc. Other economic factors, such as the overall growth of your city, contribute as well. When your home increases in value it means a bigger investment return when you are ready to sell.
- Equity – Paying rent means giving money to your landlord for the privilege of staying in their home. You won’t see that cash again. When you pay your mortgage you’re investing money into your future by building equity. You can borrow against this equity for a variety of reasons including home improvements, paying for school for your kids, medical reasons, or starting your own business.
- Savings – Building equity is akin to putting money into a savings plan. When you sell your home you can take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
- Predictability – Rent rates have been rising steadily for the past few years. Fixed mortgage payments stay the same. In the long-term your mortgage payment may end up being far less than a rent payment would be for the same property.
- Freedom – You own the home and can do as you please! You have unlimited options when it comes to landscaping, home decorating, and more. Plus, any money you spend on your home adds value to your investment.
- Low Interest Rates – Interest rates are at a historic low. If you buy soon you could get a loan with a great interest rate, which means a more affordable monthly house payment. Now is a great time to get your foot on the first rung of the home ownership ladder.
If you have any questions or would like to go into further details about the process of purchasing a home, Provident Partners is your one-stop shop. Give us a call at 480.314.1414 and speak to one of our real estate agents or mortgage specialists today!