For many people, owning a home is the fulfillment of the American dream. Purchasing a home is one of the biggest financial decisions you will make in your life and there are many advantages of homeownership compared to renting. Often times, however, the overall cost and commitment combined with fear of the unknown prevents individuals from exploring the possibilities of owning their own home. So before you decide to throw more of your hard earned money towards someone else’s investment, consider the rewards of becoming your own landlord. Here are the benefits of owning a home vs renting.
Advantages of Buying A Home Compared To Renting
When you think about buying a home, many questions will come to mind. Do I really need to buy a home? Is my income going to increase? Have I got enough money saved? Buying a home is a major financial move, so below are advantages of owning a home compared to renting.
- Tax Benefits
You are able to write off the interest on your mortgage and property taxes you pay every year on your taxes! This helps many people get over that “standard deduction” amount which then allows them to write off even more for things like charitable donations. There are no tax breaks for renting, however. Whether it’s toward rent or toward a mortgage, you’re going to have monthly bills, so why not make it a payment that’s tax deductible? A great reason to own a home.
- Freedom To Create The Home You Want
There’s nothing like being able to say, “I own my home”. In addition, you can pretty much do with it what you want. You can paint the walls any color you want, own pets, attach permanent fixtures and decorate your home according to your own taste.
- Build Equity
Some wise guy once said something to the affect of “a home is the only stock in which you can live.” In other words, it’s an investment, just like any other investment, but you get to touch it and live in it and collect memories in it. The home is where the heart is, but it’s also where you can build a future of wealth for you and your family. As you gain equity in your home, you can refinance and take cash out to help pay for your kids college. If you decide to move, you can keep it as an investment property and rent it out. Sure, the housing market goes up and down, but it remains one of the most secure places to invest your money and get a good rate of return.
- Buying Is Cheaper Than Renting In The Long Term
There are many reasons that make buying a home cheaper like having fixed housing costs with a fixed-rate mortgage. Your rent will most likely grow from year to year. In fact, San Diego’s rent should increase by $155 a month by 2018. Interest rates are nearing record lows, and the housing market continues to rebound from financial letdown.
Benefits Of Owning A Home In San Diego
If you determine that purchasing a home has more advantages than disadvantages for you, contact your San Diego mortgage lenders at Synergy One Lending UTC! We can help you begin to explore your options for becoming a first time homeowner. Through our unique home loan program Buy A Home Save A Vet ,you can help generate a donation that will go to a non-profit of your choice, which supports Veterans suffering from PTSD, traumatic brain injuries and suicidal depression.