Top Four Reasons to Stop Renting
The 'American Dream' of purchasing a home can be seen as either a blessing or a curse, and the misconception that owning a home can be a financial pit has kept many from working toward the purchase of their own abode. The rental market is consistently booming, but there are many pros and cons to renting from a third party owner or management company- including privacy, the possibility of high rates, and the inability to customize your living space. There are also limitations that landlords set and specific instructions that may not be feasible for most families.
Aside from the obvious freedoms, what are the top five reasons for owning a home versus renting? Let's discuss that here.
CUSTOMIZATION
If you're a renter, there's a very small chance that your landlord is going to allow you to do things such as paint or change out certain design elements, let alone knock down walls, swap out the kitchen cupboards, or tear up the bedroom carpeting. If you own your own space, you'll be able to do pretty much whatever you want, unless it messes with the home's structural integrity. You can also customize your space without having to worry about the security deposit, or ending up in court for damages.
TAX DEDUCTIONS
Outside of moving expenses, renters can't deduct much from their taxes. If you own your own home, you can benefit during tax season by deducting mortgage interest payments and eligible expenses, including energy-efficient changes made to the home.
FIXED-RATE MORTGAGES
Most leases are annual, which means a landlord can choose to increase the rent from year to year. Factors depend on the current rental market, availability in the area, and knowing that most tenants would rather pay more than have to pick up and move. As a home owner, having a fixed-rate mortgage guarantees that your mortgage payments will never increase- and you'll never have to worry about dealing with a landlord again.
FINANCIAL BENEFITS
When a homeowner is making a mortgage payment, they are investing in their credit, the equity of the home, and in themselves. When a renter pays the rent each month, that money just goes directly to the landlord. It's like investing in yourself each month. Homeowners studies have also suggested that homeowners save more money than renters, they invest in things they need instead of things they want, and they also buy less furniture and home decor over time, which saves money and keeps credit scores high.
Home ownership grants independence to the buyers, and ultimately gives them freedom that renting can otherwise take away. At Pavon Realty Group, our goal is to help you find your dream home that fits your immediate needs, your long term goals, and stays within your budget. Allow us to help you transition from renter to home owner in 2018.