If you’re like most potential homebuyers, you have probably sought advice from friends, family and co-workers. However, you may still wonder if buying a home the right thing to do.
If you were asking us for advice, this first thing we would tell you is this – Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will be.
If you are currently renting and looking to buy, here about the top 5 financial reasons why it makes “cents” for you to buy your own home:
1. Homeownership is a Form of Forced Savings.
Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, you guarantee that your landlord is the person with that equity.
2. Homeownership Provides Tax Savings.
One way to save on taxes is to own your own home. You may be able to deduct your mortgage interest and property taxes, but make sure to always check with your accountant first to find out which tax advantages apply to you.
3. Homeownership Allows You to Lock in Your Monthly Housing Cost.
When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 5, 15, or 30 years. Interest rates have remained around 4% all year, marking some of the lowest rates in history. The value of your home will continue to rise with inflation, but your monthly costs will not.
4. Buying a Home is Cheaper than Renting.
According to the latest report from Trulia, it is now 37.4% less expensive to buy a home of your own than to rent in the US. That number varies throughout the country but ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.
5. No Other Investment Lets You Live Inside of It.
You can choose to invest your money in gold or the stock market, but you will still need somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.
Before you sign another lease, give us a call. We will work to help you better understand all your options.
Give us a call! We’d be honored to assist you in selling your home, as well as finding your next one. Remember, at any price in any neighborhood, The Robinson Team sells homes!