So you’re thinking about buying, right? You obviously wouldn’t be here if that wasn’t the case, so let’s get down to the nitty gritty. What are the real reasons why someone should buy a home? We want you to make a good choice, and we definitely don’t want you to have to rent again if we can do anything about it! While purchasing a home may seem daunting (because let’s be real, it’s probably the biggest purchase you’ve ever made), we want to ease your mind and remind you why you’re actually making a killer decision. So, here are the 11 reasons we came up with.
Buying a home is actually cheaper than renting! Don’t get me wrong, your initial upfront costs can definitely add up to be (sometimes) more expensive than the initial costs of renting a unit. However, over time owning a home is cheaper than renting, not to mention that if you’ve got a boss-lender they can almost always get back what you put up (aside from your down payment – let’s not get ahead of ourselves here). Also, bet ya didn’t realize that your monthly mortgage is typically much less than what you’d be paying to rent something of the same value. Crazy right? Move out of that apartment and finally get that house you’ve been dreaming of, it’s probably cheaper!
2) Not only is your mortgage cheaper than rent, but your monthly payments are stable! One of the major drags of renting is the unknown that comes with your monthly payments, year after year. It’s no question that your rent will become more expensive each year you renew that lease agreement.
Rest assured that when you buy your dream home, you won’t have to worry about someone else dictating how much your monthly payment will be. Much like the popular majority, you’re most likely going to be obtaining a loan to fund your home (Unless if you’re Oprah!). If that’s the case, you’ll likely get a fixed-rate mortgage since they’re the most popular type right now. Although keep in mind, your mortgage may adjust according to property taxes in your area or if your homeowners insurance were to change, but these amounts are typically very small adjustments in your monthly payment.
3) Being a homeowner provides an enormous opportunity to build equity. What’s equity, you ask? Say for example you buy a home for $300,000 and after owning for 1 year you decide to have your friends at Living Salt Lake pull a comparative analysis report on your home, which is now worth $330,000! Say what! (Btw, totally possible) Equity is your economical gain on your home. Guess what guys? That home just turned into an investment! You can now sell your home for THIRTY THOUSAND dollars more than what you bought it for a year ago. Cool right?
4) Taxes are a necessary evil that we all have to deal with. However, owning a home provides tax advantages. Although most of us may not enjoy paying taxes, we sure do enjoy the occasional tax break, am I right? This can include the option to deduct paid monthly interest from your tax returns, mortgage insurance payments and other home-related purchases. Check with your local tax professional to get more info about how homeownership is a tax benefit.
5) One of the biggest deal breakers of renting for me was not having the freedom to make changes to the property I was living in. Something as little as throwing a little paint on the walls is often spelled out in the lease as an absolute do not. Who likes being told what to do? Owning your home means you have the greenlight to do whatever, whenever you want. Not to mention making budget friendly improvements in your home will also improve your equity (nudge nudge, wink wink)!
6) I know that building your credit is such an adult thing to do, but if you’re looking to buy a house then I hate to break it to you, but you’re kind of an adult. There are quite a few things that can impact a person’s credit score, improving the average length of credit accounts and owning a home are up there as being the most important and effective ways of keeping that credit score in good condition. Paying your mortgage every month on time makes you look (on paper at least) like you’re responsible and will be likely to get approved for a larger loan later on down the road.
7) Remember when I mentioned earlier that you now have a solid investment because of the equity you’ll obtain in a matter of months? I wasn’t joking! Investing in a home is surely more expensive than investing in a car, but your return is significantly larger than what you might get out of a vehicle. It’s no secret that you lose value the moment you drive it off the lot, you’ll be lucky to break even when it comes time to sell. On the other hand, owning a home does the opposite. In many cases real estate will appreciate, depending on local market conditions.
8) There’s a sense of pride in ownership and community involvement when you buy your first home. Building relationships with neighbors (or not if you’re Eden), local politicians, community service employees such as firefighters, is something that most renters refrain from because of how unstable their living situation can be. Making friends with neighbors means that you won’t have to crash the neighborhood block party – you’ll actually just be invited. Don’t be like Eden, folks.
9) One of my favorite parts about shopping for a home was that I actually had a choice in its location! The number of options available for rental property is often limited, depending on where you live. Buying and owning a home gives you more of an opportunity to pick where you want to live, which is a huge factor for most people when they decide to purchase. Where someone works or what school district they need to stay in can be a huge deciding point in which home to buy.
10) It seems pretty trendy for people who rent a home or an apartment to frequently be on the hunt for a new pad. Owning a home improves stability for many people, which should definitely be a perk. The bonus is you get to stay as long as you want (as long as you’re making payments)!
11) Getting to keep your furries is what sold me on buying my own place. I couldn’t bring my ginormous Great Dane anywhere with me if I decided to rent. If you’re anything like me and value your little furries better than life itself then you probably understand when I say that I was not havin’ it. Although some homes that have an HOA may induce restrictions for our animals, purchasing will ensure that you’ll never have to send them elsewhere to get love.
As per this satisfyingly long blog post, you can see that there are so many great reasons why you should stop renting and start shopping for your dream home NOW! Do it now!