Finding a place to live can be an extremely stressful task. Many thoughts go through your head when you decide, specifically “Should I buy a house or rent one?”. Before you get on with your search, you must first decide which option is best for you.
It would be best if you considered a few things before making this giant leap. The primary factor that would impact your decision is how much you are willing to spend. Renting a house might sound a bit beneficial for now, but if you see it in the long run, you might get no benefit out of it. Homeownership is better than renting. Not only do you get to call your place of residence “home,” but there are some very compelling financial reasons why owning a home beat renting in almost every category (tax benefits, equity growth, long-term goals)
Here is what you need to know about the benefits of owning a house instead of renting:
1. Relief from Paying Rent:
Don’t you hate paying rent? With the ongoing market conditions and mortgage rates, now is the time to consider transitioning from writing a monthly rental check to investing in your own home. The financial benefits of buying a house can outweigh your monthly mortgage payments if you keep your housing costs low enough by shopping around for the best rates on mortgages and insurance.
You can use the Buy Vs. Rent Calculator to consider the decision of buying a property or renting it. For example, if you buy a house worth $ 200,000 today and increase value by 3.9% every year, your home would be worth approx. $ 233,000 after five years.
2. Tax Advantage: That would save you a lot
There are several advantages of buying a home which includes the ability to grow equity and certain tax advantages. It’s also an acquired milestone that offers a sense of pride and accomplishment. The current real estate and mortgage market conditions have created the perfect opportunity to transition from paying monthly rentals to investing in your own home.
3. Market Condition
Today’s real estate market conditions have created the perfect opportunity to move from paying a landlord for a set amount of space at a fixed rate every month into buying that space yourself. A house is indeed your castle, and buying one beats renting in almost every category
4. Building Equity
In many cases, buying a home offers the opportunity to build equity as you pay down your mortgage. According to a study by the Joint Center for Housing Studies at Harvard University, homeowners can accumulate wealth at twice the rate as renters do over time.
You can also minimize risk with proper insurance coverage because it protects against unexpected catastrophes such as fire, severe storms, vandalism, and theft. Quit wasting money on rent and start investing in your future!
Buying a house has always been a profitable investment. With all of the benefits lined up for you above, the decision lies in your hand whether you want to buy a house or rent it. If you’re looking for a competent consultant, then Look Up Realty is your place to go.