Finding a place to live can be a daunting task. So many things go through your head when you make this decision. The first is probably “Should I buy a house or keep renting?”
Good question. Before you take the big leap, you must first decide which option is best for you. While there are many things to consider before making your decision, your purchase power is the primary factor that should influence your decision.
For many people, owning a home makes more sense financially than renting a home. And there are also many reasons that owning a home is better for many from a lifestyle perspective as well. Below are the top reasons people buy instead of rent.
Build Equity
Homeownership is a defacto savings account. You pay your lender every month, but eventually, the cash comes back to you in the form of equity as the market value of your home appreciates over time.
Stable Payments
With a fixed-rate mortgage, your monthly principal and interest payment is set for as long as you keep the loan. Sign a rental lease, however, and you could see your rent rise the following year or in perpetuity.
Tax Benefits*
As of 2023, when you sell your primary residence, you can avoid capital gains tax on a profit of $250,000 (or $500,000 for married couples).
Community Involvement
Homeownership goes hand-in-hand with voting, school volunteering, and general civic roots. If you own a home, you may be more likely to put roots down and connect with the people in your community.
Pride of Ownership
Renting a place can feel temporary, but ownership often fosters a sense of pride.
If you’re looking to buy a home, contact me today. I’ll work with you to see what you can afford and help you run the numbers regarding your particular rent versus buy scenario. Don’t believe the news about interest rates. There are creative ways that mortgage companies can bring the rate down.
These tips and many more can be found in our book, The Essential Handbook for Buying Your Home. For a free, no-obligation copy please contact us here or give us a call at 775-525-0309.
*Please contact your tax professionals for the latest tax laws. Tax benefits are always subject to change.