Benefits of Home Ownership

Benefits of Home Ownership

Have you been considering buying a home? Have you wondered if it was better to rent or to buy? Have you wondered what the benefits to buying a home are? With mortgage rates at the lower end of the spectrum and the five reasons below, I think you will see that this is still a great time purchase a home.

1.     If you are renting you are paying someone else’s mortgage. Along with paying their mortgage you are giving that person a nice tax deduction that could be yours. Mortgage loan interest may be deducted on your tax returns. This tax savings is not an option available to renters. (Consult a tax professional about the tax savings benefits of home ownership.)

2.     How many times has your rent increased since you have started renting? You have no control over if it will increase or not. When you purchase a home you have stability, because fixed mortgage payments (principal and interest) will not change during the loan term whereas rent payments may increase annually.

3.     When you move out of your rental property you will not have anything to show for it, except that you had a place to rest your head and to store your things. Home ownership allows you to build equity. Owning a home long term allows equity to build and thus your home investment to grow. Do you know what equity in real estate means or how it works?  It’s the difference between the current fair market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage. Equity can be used to obtain a line of credit or a loan for home improvements, cash for emergencies or big-ticket items or to bring down the amount you would need to borrow on a bigger and or nicer home.

4.     In most markets your home will appreciate. This means it will increase in value over time and this with paying your loan down is how you obtain equity in your home. Your rent payment does not give you any return on your money.

5.     What types of options do you have in making your rental property reflect your personality or your lifestyle? Anything you do will need to be approved by your landlord, correct? When you purchase a home you have a place to call your own. A place you can add your own touches with paint, flooring, fixtures, landscaping or complete remodel that will reflect your tastes and lifestyle. Maybe you would like your own pool and the privacy it affords you and your friends and family. How about the chance to get to know your neighbors, neighborhood and be involved in what goes on in your area.

Is it time for you to stop throwing away your rent every month? Do you want your tax savings, the stability of the same monthly payment, to be able to build equity and appreciation, as well as a place to call your own?  Now is a great time to invest your hard earned money in home of your own.  Call The Ehrke Team 480-526-0306 and find out where to start.

 Based off of Trulia’s Rent vs. Buy Report, October 2015