Owning a home is often shown as the absolute epitome of the American dream. It’s better than renting, and gives you property of your own. Some people are still on the fence about buying, though, so we wanted to give some reasons why owning your home is better than renting.
Owning Assets Is Valuable
Every payment that you make on your home gives you equity in your home and gets you closer to ownership. With rent, this money just gives you the right to stay there. Homes can also appreciate in value, as well as gaining value when you add features and improvements. These also increase your equity. It’s a solid investment that usually pays off long term.
You Don’t Want To Move Around
Renters typically move every couple of years. When you buy a home, you’re setting down roots and settling in. When you’re ready to stay put for the long haul, buying is far more effective for your financial health than renting.
Rates Are Low, For Now
Interest rates are at historic lows right now, and it’s a great time to buy a house. You need to buy soon though, to take advantage of the low rates. The economic job recovery is leading rates to start to rise, so your time may be short.
Tax Deduction, Baby!
On a 30-year loan for $200,000 at 5% interest, you can get nearly $10,000 in the first year as a tax deduction. Itemizing your deductions can reduce your taxable income. After putting enough down, you may also be able to tap into the equity you hold to borrow for other major expenses such as home improvements or college tuition, using a home equity loan or line of credit. Your equity is the market value of your property minus what you owe on it.
Make sure that if you’re ready to buy, you get a pre-approved mortgage from The Home Loan Expert, Ryan Kelley. That way, you know exactly how much you can afford, and won’t be disappointed when it comes time to sign on the dotted line. In St. Louis, call 314-781-9700 or apply online at www.thehomeloanexpert.com today. Nobody makes it easier to buy a new home than The Home Loan Expert, Ryan Kelley.