Renting vs Owning a Home
Owning a home is the American dream for many, giving people the satisfaction and pride of having a place to call their own. But that is not the only reason to consider renting vs owning a home. In addition to gaining more living space, homeowners enjoy the benefits of independence and a sense of achievement.
No question about it, homeownership is a big investment, but in the long run, it is an investment that pays for itself many times over.
6 Reasons to Stop Renting and Start Owning a Home
1. Owning a Home Often Costs Less Per Month Than Renting
In some places, rent is still affordable, but in many places, rent is higher than a comparable mortgage, especially when you consider that mortgage interest and property taxes are tax deductible.
There is also less cost variability over time on home ownership, as long as you take out a fixed-rate mortgage.
2. Owning a Home Adds Stability to Your Living Situation
As a renter, you are subject not only to rising rent rates, but also to building sales and changes in renters’ rights laws.
When you own, your home belongs to you until you decide you are ready to move.
3. Owning a Home Allows You to Benefit from Mortgage Interest
When you own your home, you can deduct mortgage interest from your income tax. The mortgage interest benefit goes to your landlord when you rent.
4. Owning a Home Allows You to Deduct Real Estate Taxes
Just like mortgage interest, real estate taxes are deductible if you own your home. However, that tax benefit goes to your landlord if you rent. Local tax benefits are also available in many areas.
5. Owning a Home Gives You a Better Credit History
A major indicator of financial responsibility and stability, homeownership gives you the chance to build a strong credit history.
Depending on your rental situation, your landlord may not report your on-time rent payments at all, meaning it will not help you build good credit.
6. Owning a Home Helps You Build a Retirement Nest Egg
If you are married and filing jointly, you can enjoy tax-free profits up to $500,000 from the sale of a primary residence that you have occupied for two of the last five years.
If you are single or married and filing separately, you can enjoy tax-free profits up to $250,000.
—- Bottom Line —-
In most cases, owning your own home is a sound financial decision.
When you are ready to give up renting, a qualified real estate agent can help you achieve your dream of homeownership. With a mix of real world experience and advanced training, an excellent real estate agent has the tools necessary to help you find the right home.
Reach out today to take the first step toward owning your own home and finding ‘A House That Fitts’ YOU! Give us a call at (205) 248-7353 or send us a message. We look forward to helping you realize your dream of owning a home.