Are you on the fence about home ownership? It’s no wonder, with all of the negative press these days about the state of the economy and the huge increase in foreclosures. That’s enough to scare off any
first-time home buyer. But don’t let that deter you from taking the leap and purchasing a home – there’s never been a better time to buy!
Right now is truly a buyer’s market. Not only is there currently a large selection of homes available for sale right now but home prices and interest rates are at almost historical lows.
While buying and renting both have their ups and down, buying is proven to make your money go further, if you’re ready to take on a mortgage and all of the other costs that come with home ownership.
Here are five reasons why buying a home is almost always the better choice:
- Equity. When you pay rent, you never see that money again. It is lining the landlord’s pocket. Yes, buying a home may come with some heavy initial costs (down payment, closing costs, inspections), but you will make that money back over time in equity built in the home.
- Tax advantages. Property taxes and interest can be itemized for tax deductions.
- Ownership. The buyer can redecorate, remodel, or make improvements to the home as they see fit and have few restrictions.
- Lock-in payments. When you buy a home, you secure a monthly payment that you will pay for the rest of the time you own the home. If your finances suddenly change and you need to scale back on your monthly expenses, you have the option of refinancing your mortgage to reduce your monthly payment. Tenants have less control of their payments because rent can increase from lease to lease.
- Pride. Homeowners feel greater emotional satisfaction from owning a piece of property in their name and investing their time and money toward something as important as a house. This is especially true for first time homebuyers.
With interest rates as low as they are, you could possibly own your home and your mortgage payment could be less than the rent you are paying now. So what are you waiting for?