Why RENT When you can BUY?

Whether you are buying your first home, relocating, or meeting the needs of a growing family, deciding to buy a home is a big decision.  There are many advantages to home ownership, as discussed below.

Owning A Home Gives You Financial Options (Rent vs Buy Decision)

Here is a practical example.
A rent payment of $1500 a month costs you $90,000 in 5 years. You could BUY a $200,000 house, and your monthly mortgage payment (principal, interest, taxes & insurance) would only be  $1277/month (assuming an interest rate of 3.75%, a 5% down payment, & a 30 year loan). After 5 years, you would have reduced your loan principal by $18,853.   You would have also gained on appreciation of the entire value of your home, not just the on your down payment.   In addition, you are able to deduct your mortgage interest and real estate taxes, which, in a 25% tax bracket, would reduce your effective monthly payment to about $805, a savings of $695/month when you factor in the tax deductions!  Click here for other rent vs own scenarios.

Owning a Home Gives You Freedom to:

  • Make your own  decisions. When you own your  own home, you make decisions to please yourself.  You can re-tile your bathroom, or paint  the walls… without approval from your landlord!
  • Do home improvements. You can make improvements knowing the  money you spend will improve your home’s resale value, and put money in  YOUR pocket, not your landlord’s.
  • Choose your  neighborhood. You choose the  neighborhood that complements your personality, and offers the services
    and atmosphere that you and your family desire.
  • Be relieved of rent increases. Once you lock into your mortgage rate, you will always know how much money you’ll need to cover your monthly mortgage payments.
  • Build equity. With most loans, each time you make a mortgage payment, you are  building equity in your home. Also, as time goes by, your home will likely  appreciate in value.
  • Obtain tax perks. The interest portion of your monthly mortgage payment is tax deductible, as are real estate taxes!
  • Hedge against inflation. While it’s true that some homes appreciate faster than others, and some years are better than
    others, real estate has always been known to keep pace with inflation in the long run.  In fact, appreciation rates are usually well ahead of inflation rates, so buying a home is good protection.
  • Leverage. You can receive a great return on your investment with little or no money down.

So what are you waiting for?  Get pre-approved today and let’s start looking for your new home!

Leave a Reply

Your email address will not be published. Required fields are marked *