Now that you have secured your new home you have to move in. With so many things to do to get your home ready, you have a lot of work ahead of you. A lot of that is for the future though. To survive
The Advantage of Buying over Renting
Even back to the early beginnings of America, it has always been the dream of the citizens to own a piece of their property and to be able to own their own home. Though it is a pretty significant commitment to own a home, the long-term benefits far outweigh the benefits of renting.
Let’s discuss the benefits of buying versus renting.
When you decide to buy a home, you start building equity, which then allows you to use that equity towards other things. Every dollar you spend toward your home gives you ownership of this piece of property. Having a stake in your property will enable you part of the money from your house to do things like adding an addition, paying off debt, or send a child to college. When you are renting, those dollars only go toward the landlord, and you will never see any benefit back.
When you own a home, there are many tax benefits. As the government wants people to own homes, they have given them certain tax credits that can be deductible. Some of the items you can deduct interest on the mortgage, property taxes and any profits you get from selling a home. You can always talk to a tax professional to see if other items will benefit you in the ownership of a house. Renters get no tax relief.
As a homeowner, you can decide at the beginning what your monthly mortgage will be. Knowing your mortgage amount every month will allow you to make sure it is something you can afford and that won’t go up. This fixed cost enables you to focus on other aspects of either your home or other expenses that come up. Also, your home value will most likely continue to rise in the next 15 or 30 years. When renting, you are not in control of when prices go up, even when your salary may not.
Many reports show the cost of a home over time versus renting will be cheaper. One report on https://www.trulia.com/blog/trends/rent-vs-buy-fall-17/ from Trulia shows that it is anywhere from 6% to 57% cheaper to own than rent. Though rent can sometimes be less expensive over the short run, over time, it will probably be more expensive.
Living in your Investment
While you can invest in other things like the stock market, or gold, a home is a much more substantial investment. Your family can live in your investment, you can be close to your work, and if things get tight financially, you can still have some equity to help you when you need it. Owning a home is the best investment.
It may be a temptation to avoid saving for a home because the initial investment can be steep, the long run will always be worth it as an investment, and also as a place to live.
For more lending information, contact Guy Hassell.