How do the benefits of owning a home compare to those of renting a home in our market? Find out here.
Today I’m joined by Justin Allender from Success Mortgage Partners to discuss the benefits of homeownership compared to renting a home.
According to Justin, one of the biggest benefits of owning your own home is that you’re locking in your rent payment for the next 30 years. Often, landlords continue to raise rents each year, sometimes making rent payments hard to budget. Having a fixed payment means that you can plan your finances around your monthly mortgage payment.
Additionally, when you own a home you can write off the property taxes and the interest on your tax returns. Of course, it’s wise to speak with your accountant or CPA to learn about this in more detail, but many have taken advantage of the tax benefits of owning a home.
Someone who pays $1,500 a month in rent will, in five years’ time, have paid $90,000 to their landlord. If you buy a $200,000 home instead, you could begin building equity over those five years—about $30,000, assuming even a low appreciation rate (over the last few years, we’ve seen upwards of 6% to 9% appreciation rates!).
So overall, homeownership is a great way to start saving and putting money into an appreciating asset. Plus, having a safe place to come home to at night is no small thing for you and your family.
If you have any questions about whether it’s a better choice to rent or buy a home given your unique situation, don’t hesitate to reach out to us. We hope to hear from you soon!