There are five reasons why you should quit renting and buy your own home.
Renting is unpredictable and can feel like a waste of money because you’re paying off your landlord’s mortgage and building their wealth. Buying a home is still the American dream, and there are five reasons why.
1. Consistent housing cost. One of the biggest costs to your monthly budget is the cost of your house, and when you rent, you’re at the mercy of your landlord and the rental market. Your housing costs tend to rise annually, but if you get a fixed-rate loan, your monthly mortgage payment will be the same each month, which makes it easier to plan your future budget for years to come.
2. Security, peace of mind, and feeling part of a community. When you rent, you’re often just 30 or 60 days away from having to pick up and move if your landlord gives you notice or decides to sell. This can put people on edge knowing that their stay can be temporary. When you own, you’re more likely to feel vested in your community and making it a better place.
3. Tax benefits. When you own a home, you have a major tax deduction for mortgage interest and property taxes when filing your tax returns.
4. Personalization of the home. When you own, you can paint the walls any color you want and makes changes to customize the home according to your tastes.
5. Build credit and wealth. When you own a home, you continue to build good credit, which will make it easier to borrow money in the future. Real estate is the basis of all wealth, and when you own a home, you accumulate equity over time. You’re getting closer to paying off your mortgage and can capitalize on the appreciation of the property.
How do you get off the rent mill? Most renters opt to rent because they can’t afford to buy where they live or they don’t have a good credit score. Where do you start? There are three steps you must take.
First, talk to a good lender. They’ll give you options and ideas regarding loan programs with grant money and closing cost assistance. They can also talk to you about how to improve your credit score and advise you about programs you might not have heard of that are open to you and your profession. Don’t be afraid to schedule a consultation. It won’t cost you a thing, and I’d be happy to put you in touch with a good lender.
Second, find an up-and-coming neighborhood—maybe one that’s getting ready to take off in terms of appreciation.
Lastly, make a plan to start saving now. Even in a worst-case scenario, you at least put together an emergency fund for your future.
If you have any questions about what to expect as a first-time buyer or what makes sense for your specific situation, don’t hesitate to give me a call. I’d love to speak with you.