There are still many people today who rent instead of buy, for no other reason than they don’t understand the first steps to take, and just how affordable homeownership truly is. While many have an ideology that renting a home has many benefits, such as the flexibility to move when you would like. We have had the opportunity to speak with many people who were interested in renting one of the properties we manage. One of the top responses we hear is that they are only planning to live in the area for a few years at best, and will be moving elsewhere after. To put a dollar figure to better make one understand the ramifications of renting, $2,500 per month over 3 years equals $90,000. Instead of building equity in a property that will most likely appreciate within those three years, you put it directly into your landlord’s pocket!!
One thing that a renter cannot do is build equity over time. Homeownership allows homeowners to invest back into themselves and their property. With more of the principal paid and the property continuing to appreciate, a homeowner will have essentially put money away for their future. When you work with the right lender you will better understand what your monthly payments will be. As a homeowner, you won’t need to worry about moving out of your property due to someone else’s life circumstances.
There are many benefits to homeownership, and taxes are a big part of that. There are a number of tax benefits out there, however not all homeowners will qualify. We would recommend discussing all tax benefits and breaks with an accounting professional. Some options you may want to look further into include:
- Mortgage Interest Tax Deductions
- Capital Gains (On properties that have significant appreciation)
- Homestead Exemption
- Federal Tax Deductions
Sense of Belonging and Community
Homeowners typically stay in their property longer than renters do, meaning as a homeowner you would be more likely to lay down roots. As a homeowner, you would be more likely to care about how your property looks, who your neighbors are, and what developments are occurring within your community.
If you are considering weighing the pros and cons of purchasing a home or continuing to rent, give us a call! (858) 413-7290. Even if you are unsure if you are able to purchase, we offer FREE no obligation consultations and will connect you with our team to determine the best route for you.