Recently I was asked why it would be better for someone to buy a home right now rather than continue to rent. I was given the who speech about how the "market hasn't hit bottom" and "we haven't seen the worst" yet. Al of which I simply respond to with, ok. What do you say? When someone has their mind made up before they ask you a question there's not much left to say. Rather than talk about how interest rates are lower than they ever have been, lending IS available, yes I said IS, and houses are more affordable than they have been in years, I decided to find out the answer to the question, why should you buy when you can rent.
Pros and Cons of Ownership
How can you tell whether owning a home would benefit you? A good way to find out is by considering the ways homeownership can affect your life.
• Build equity — your wealth will increase as you gain more home equity
• Gain tax advantages — mortgage interest is tax deductible as per IRS code
• Stabilize your payments — monthly payments are relatively steady if your loan has a fixed interest rate, while your landlord can increase the rent
• Have a secure place for your family to live — a home provides a permanent place where your family can live and grow, and you can decorate or expand a house the way you like to create your dream home
• Gain a sense of community — homeowners often are more involved in the well-being of their communities; many homeowners work together for better schools and less crime
• Maintenance costs — it takes work and money to keep a home in good condition
• Ties up your cash — selling the house may not be possible during the first few years of ownership; moving is more difficult and complicated and you may not have as much flexibility in choosing a new job location
• Can fluctuate in value — there is no guarantee that your home will increase in value; it could decrease in value
• Obligates your finances — when you buy a home, you are obligated to a set monthly payment
Though these are not the only factors to consider when you are trying to decide whether to buy or rent, they are helpful at beginning to determine which decision is best for you and where you are right now. Home ownership has great rewards, a sense of accomplishment, and a place to call your own. Along with those rewards comes great responsibility. Renting allows you flexibility to move with minimal notice, no maintenance or repair costs and a place to rest your head, yet there is still something about that phrase, "There's no place like home".
For more information on purchasing a home or to determine if home ownership is right for you, CONTACT ME.