Owning a home is not just about the benefits that come with it. It’s an investment in yourself and your future! With mortgage rates at historic lows, now’s definitely been deemed as “the time.” You can finally take advantage of all those tax breaks you’ve been waiting for; grow equity by paying less than rent each month (or even buy cheaper); feel good knowing this purchase will eventually rise exponentially thanks to inflation–and who knows what else? And if we’re talking status symbols… Well then there are few greater ones than owning something outright: no rental agreements nor tenant-friendly landlords are needed here.
Whether you’re a first-time homebuyer, or it’s time to move on from your starter home, there are plenty of reasons to stop renting and buy a new place. If you’re on the fence about buying a home, here are 10 reasons why it may be worth taking the leap:
1. Renting is expensive
Renting is expensive. The average renter spends $9,477 per year on housing and utilities, according to the Bureau of Labor Statistics.
Homeownership brings many advantages to the lives of families and individuals – pride of ownership, a sense of security, and a place to raise children. But it also comes with significant financial responsibilities and risks. As you consider your options for buying a home, it’s important to ask the real estate agents to understand both the benefits and the risks.
2. Homeowners pay more in taxes, but get tax breaks, too.
The upside of buying a home is that homeowners pay more in taxes, but they also get tax breaks. The main tax break is the mortgage interest deduction. You’ll be able to deduct the interest on your mortgage, which will reduce your taxable income by thousands of dollars each year.
The other major tax break is the property tax deduction. Property taxes are usually added to your monthly mortgage payment, and you can deduct them from your federal taxes.
You’ll also be able to deduct certain closing costs you paid when you bought your home, as well as expenses related to getting a mortgage like points or loan origination fees.
3. You’re building equity with every mortgage payment
You’ll build equity. Unlike renting where all of your monthly payments go into someone else’s pocket, owning makes you a partaker in one of America’s favorite pastimes – house flipping. Every time you make that monthly payment, your equity grows and gives you an asset that could be cashed in later down the road when you decide to sell or refinance.
4.You can use your home as a tax write-off
The main reason to buy a house is that it’s good for your bottom line. But you can also use it as a tax write-off — the IRS allows you to deduct up to $500,000 in mortgage interest from your taxable income. This will save you money on the taxes you owe.
5.Renting doesn’t boost your credit score
If you’re paying your rent on time, you might think you’re building credit. But that’s not the case.
Unless you’ve set up a “rent reporting service” with a third-party company, your landlord doesn’t report your rent payments to the credit bureaus. This means the on-time payment of your rent goes completely unnoticed by Equifax, Experian and TransUnion.
So unless you have student loans or other debt that’s in good standing, if you don’t have a mortgage or auto loan, it’s almost impossible for you to build a strong credit score.
If you want to buy a house or car in the future, you’ll need to establish credit beforehand. So one of the biggest reasons to stop renting and buy a home is that your monthly mortgage payment could help boost your credit score.
6. Many renters don’t know they can afford a home
You can afford more houses than you might think. Many renters don’t know how much they can afford to spend on a home or assume that it’s much less than it actually is. In fact, as long as you have some money saved for a down payment and your credit score is good, you may be able to qualify for a loan to buy a home for about what you’re currently paying in rent.
There are many programs available for first-time home buyers with modest incomes or little-to-no savings for a down payment. A National Association of Realtor survey found that 80 percent of Americans who could afford to buy aren’t aware of these programs, so be sure to ask your realtor about options that might make buying possible for you.
7. Your mortgage payments could stay the same while rents rise
Your mortgage payments could stay the same while rents rise. At some point, your landlord will raise your rent, or you might have to move and find a new place to live. If you buy a home, though, your mortgage payments will stay the same as long as you don’t refinance your loan. In the meantime, your rental costs will continue rising — and they could rise faster than home prices.
You can build equity instead of paying someone else’s mortgage. If you’re paying $1,500 per month in rent, that’s $18,000 every year that would be going toward building equity in someone else’s home — not yours! That money could be going into an investment that appreciates in value over time and increases your net worth.
8. You can put down roots in an investment that’s all yours
You can put down roots in an investment that’s all yours. If you like where you live, wouldn’t it be nice to stay put for a while? Owning a house means you can build a community and enjoy the stability of your neighborhood for years, even decades. And all the while, your house is growing in value.
9. Homeownership brings stability
Owning a home allows you to be more stable in that area, as you don’t have to worry about moving at the end of every lease. You can plan ahead, knowing that you’ll be living in the same house for many years to come.
That stability also helps you build and maintain your credit rating. Staying in the same place for several years without any late payments on your mortgage is a great way to build up a good credit history.
10. You can customize a house to suit your needs, but not an apartment.
When you live in an apartment, there’s very little that’s yours. The walls, floors and ceilings are all owned by the landlord or property management company, and you’re limited in what you can do with them. You can paint over the walls, but it has to be back to its original color when you move out. You can’t knock down walls or install new flooring without permission from your landlord.
That’s not the case with a home. As long as it doesn’t violate local zoning laws or building codes, if you want something done, chances are good that you’re free to do it yourself — or hire someone else to do it for you.
The home will always be seen as an integral part of the American dream—and for good reason. There’s still plenty to love about buying a house, and you’ll want to take advantage of these benefits now more than ever. If you’re ready to take the plunge into homeownership, contact your local real estate agents today! Overall, finding a real estate agent in Mill Creek will help you navigate the home buying process, saving you a lot of time in the long run. Darren and Gwen are ready to help you find your new home! They will work with whatever needs, wants or budget while providing a memorable experience that’s aligned perfectly with what YOU want. Call them at 425-338-9400 today so they can show you around the property THAT IS PERFECT FOR YOU!!
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source https://localhomereviewguide.wordpress.com/2022/05/15/real-estate-agents-mill-creek/
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