Determining whether to buy or rent your next home is one of the biggest financial decisions you can make. Lyons Mortgage believes homeownership is a better investment, both in quality of life and from a financial perspective. We’ve outlined five advantages to owning your home versus renting.
Freedom to do anything with the property
Unlike when you live in a rented property, homeownership allows for practically any sort of remodeling or fixing you’d like. You can finally create that dream home you’ve wanted! If you’d like to rent out the home in the future, you can do so, creating another revenue stream.
Increasing equity in your home, or your portion of the value in the property, is a major financial advantage when comparing homeownership and renting. Your equity will increase as you pay off your mortgage. Equity also gets bigger as the value of your home appreciates over time. Money paid toward rent is money you’ll never get back, while the money you pay toward your house boosts your stake in something that will likely become more valuable over time.
If you do your due diligence and make a wise home purchase, the property value will increase over time. This creates increased financial flexibility; as we discussed above, over time you will be building equity in an appreciating asset. Highly rated school districts are one of the markers of a neighborhood where houses could become more valuable as time goes on.
Fixed-rate mortgage costs stay the same, while rent costs rise
Rent prices continue to rise each year. If you are in a large metro area in a building without rent control, prices can quickly increase. While it is likely that you are paying more money upfront when you buy a home versus renting, over time it could actually wind up being more expensive to do the latter.
There are several tax deductibles available for homeowners that are not offered to renters, such as property taxes, monthly interest, and mortgage insurance premiums. Being able to deduct a portion of your housing expenses is another way to save money long term versus renters.
Now armed with more facts about the advantages of homeownership versus renting, click HERE to get your preapproval started. If you have any questions, feel free to reach out to firstname.lastname@example.org, or call us at (800) 448-8101.