Determining whether to buy or rent your next home will undoubtedly be one of the biggest financial decisions you will make. Here at Lyons, we believe owning your home is ultimately the better investment, both in quality of life and from a financial perspective. If you’re considering taking this step, we’ve outlined five advantages to owning your home versus renting.
Freedom to do anything with the property
Your house, your rules! Unlike when you live in a rented property, when you own your home you can do practically any sort of remodeling or fixing you’d like. You can finally create that dream home you’ve wanted! Furthermore, if you’d like to rent out the home in the future, you have the ability to do so, creating another revenue stream.
Building equity
Increasing equity in your home, or your portion of the value in the property, is a major financial advantage when comparing ownership and renting. Your equity will increase as you pay off your mortgage, and will continue to rise as the value of your home appreciates over time. Money paid toward rent is money you’ll never get back, while money you pay toward your house boosts your stake in something that will likely become more valuable over time.
Appreciation
If you do your due diligence and make a wise home purchase, it is likely that the property value will increase over time. This will allow for increased financial flexibility, because 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
Once you have moved into your home and have a fixed-rate mortgage, the monthly payment toward the property will stay exactly the same, opposed to renting. Rents typically rise each year, and if you are in a large metro area in a building without rent control, prices can quickly hike. While it is likely that you are paying more money up front when you buy a home versus renting, over time it could actually wind up being more expensive.
Tax Benefits
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 owning versus renting, click HERE to get your preapproval started! If you have any questions, feel free to reach out to contact@elyons.com, or call us at (800) 448-8101.
