With the increasing popularity of HGTV shows and beautiful decorating Instagram pictures, many people dream about fixing up their place to make it the home of their dreams.
Making big (and sometimes even small) changes can be a hassle to negotiate with a landlord. Is it time to start thinking about home ownership?
There are multiple reasons to choose to buy a home rather than rent. According to the website Keeping Current Matters, “If you are renting and think you can’t afford a home ... think again. Buying costs significantly less than renting.” Citing the percentage of income required to afford median rent as 28.4 percent versus buying at 17.5 percent, it clearly stands on the side of buying a home and putting your money to work.
There are pros and cons to both sides of the debate, but the decision ultimately depends on what you can afford. In the end, if you are paying down a mortgage, shouldn’t you benefit from the equity?
There are some other things to consider when deciding whether to continue paying rent or to take on a mortgage.
There is nothing like having a space that completely belongs to you. You can paint the walls purple and yellow, install tiger-stripe flooring, and knock down most of the walls if you want. Better yet, increase energy efficiency and make tasteful upgrades to lower costs and increase value.
Although ownership will include maintenance costs, it benefits you to keep things in top condition if you ever want to sell.
You have to pay your mortgage each month, which means you are consistently putting money into your home. Your home will appreciate and, when it comes time to sell, you will hopefully end up with a payoff if you sell for more than the cost of the mortgage and ownership costs. When paying monthly rent, the entire amount goes to the landlord and you are essentially increasing his equity for him.
You can also deduct mortgage interest and property taxes when filing taxes each year. Although tax deductions have changed recently, it can still end up being cheaper than renting in the long run.
Possible Additional Income
Homeowners are continually coming up with creative ways to make additional income. From renting out the entire home while on vacation to renting a spare room, parking space or even a patch of land for a garden. When you own a home and need some extra cash, you always have options.
Have you ever been hit with a rent increase and had no other choice but to move? With a fixed mortgage, your monthly rate won’t change, which can be beneficial for long-term planning and those on a fixed income. As interest rates and inflation rise, you can continue to count on your monthly mortgage payment with no surprise increases.
What is the best reason to buy a home instead of renting? You can work with some really great agents at KBT Realty
! Always ready to help you find the home of your dreams, available through the holidays, and looking forward to working with you on your home-buying journey, let us know what you are looking for and we will do our best to make home ownership as painless as possible.
Becky Brown was born and raised in Wilmington girl, and has been a full time Realtor since 1995. Prior to real estate, she worked in the banking and insurance industries. She has a passion for local Fire, Police & EMS staff and volunteers and has worked with local providers to offer special incentives for first responders.Becky is an active volunteer, having served on committees for the American Heart Association, American Cancer Society, Muscular Dystrophy Association. She also served several terms on the Board of Directors for the American Red Cross. In her free time, Becky enjoys traveling, boating, reading and cooking and entertaining for family and friends. She has a miniature long-haired Dachshund puppy named Axel and loves spending time getting to know him.