Why You Should Buy a Home Instead of Renting
4 Reasons to Stop Renting and Apply for a Home Loan
Whether you've simply outgrown your current space, need to move for work, or just want to upgrade, a lot goes into finding a new residence. And aside from deciding on a location and budget, one of the biggest questions that arise during this time is whether to rent or buy. Here, Carthage Savings & Loan explains some of the most important benefits of homeownership to help you make an informed decision before your next move.
While some rental properties may have less expensive monthly payments than a mortgage, homeownership helps you gain equity – something renting cannot. Because rental properties are owned by someone else, any increase in value that is gained over time means more money in the owner's pocket instead of yours.
With homeownership, you'll gain equity as the value of your property increases. And should you look to move in the future, you may get a return on your investment. If you move out of a rental property, however, all you’ll get back is a security deposit. This benefit is hard to overlook for those who are focused on their financial future.
To truly make your space feel like a home, you need to be able to customize it to your needs. While most rental properties may let you paint the walls or hang up picture frames, they offer little in the way of personalization. This makes sense considering someone with completely different tastes may move in after you leave, but it also means that no major changes can ever be made unless the building owner approves them.
Homeownership allows you to customize your space to your every need. While home improvements and renovations aren't cheap, they are an option. If you want to redo the cabinets and countertops to design the kitchen of your dreams, go for it. Or, if you want to create a basement space where the kids can play, the choice is yours.
#3. Financial Stability
Buying a home is a large expense, but once you've calculated what your monthly payments may look like, it can be easier to plan around. Most mortgages offer fixed rates, meaning there will be no increase in your monthly payments for the life of the loan. This means your interest and principle are calculated ahead of time, and each payment will remain the same amount month to month.
With renting, your monthly expenses will be subject to an increase every year. For instance, rising property and payroll costs and are just two of the reasons building owners raise rents annually. What started as an affordable space may have you looking to move again a few years. Plus, many renters won’t know their rent will increase until only a few months before their lease is up, requiring them to come up with a plan fast.
#4. Tax Benefits
Lastly, when you rent, you'll get no benefits during tax season. In most cases, homeowners will see deductions when choosing to itemize their taxes, receiving additional money back for mortgage interest they've paid during the year.
Speak to a Team Member Today
These are just a handful of benefits to homeownership. If you're ready to stop renting and experience the advantages, let the team at Carthage Savings & Loan guide you through the mortgage application process. We offer competitive rates, and you can even pre-qualify for a loan by providing basic details online. For more information, contact us today.