The time has come. You are on the brink of establishing a place to call home. One of the first steps in the decision process is to decide whether you will want to rent or buy. There are advantages and disadvantages of each, but there are a few key reasons why buying a home often outweighs the decision to rent.
1. Build Your Dream Home
One of the greatest luxuries of owning a home, is the option to customize your living space from floor to ceiling at your own leisure. Want to knock out a wall, add a splash of color, install a wet bar, replace carpets with hard wood flooring, build an office space, or add a nursery? The possibilities are endless when you have the opportunity to build your nest according to your plan. Not to mention, as life changes, families grow and tastes change. Owning a home will give you the flexibility to adapt your space to fit your lifestyle.
2. Opportunity For A Second Income
As a homeowner, you have the opportunity to rent to others to gain a second source of income. While most don’t have the luxury to rent out an entire home, it’s often a possibility that your home may offer a cozy guest room that would be a perfect fit for a roommate or an Airbnb guest. If you do have the luxury of owning a vacation home or rental property, there is a ton of potential for capitalizing on your property if you do your research.
3. Tax Deductions
There are several tax deductions for homeowners that may result in a higher tax return including: property tax deductions, (PMI) private mortgage insurance deductions, vacation home tax deductions, energy efficient upgrades, and etc. A tax professional can advise which deductions you may be eligible for. Ask your mortgage lender if they have any recommendations of tax professionals they know and trust so you can be sure you are working with a trusted adviser. Our team can certainly point you in the right direction.
4. Take Advantage Of The Market’s Low Interest Rates
Interest rates are lower than they’ve been in previous years and rates are always changing. Now is a great time to take advantage of the current low rates before they potentially rise. Timing is everything when purchasing a home. Consult your real estate agent and mortgage professional to discuss the current state of the market when you’re ready to buy.
5. Build Equity
Buying a home is an excellent way to build equity. Building home equity allows a homeowner to borrow money against the value of their home. For instance, if a parent was planning to help their son or daughter through college, the homeowner could use the equity in their home to take out a loan to provide the funds for their children’s education.
6. Unlike Rent Payments, Fixed Mortgage Payments Will Not Rise
When renting, there’s always a risk of monthly rent payments increasing depending on the landlord or property management company. Fixed mortgage rates are constant and will not result in surprise payment increases.
7. Stability and Sense Of Belonging
There’s a sense of permanence to living in a home versus renting. It’s more likely that a homeowner will stay in their home for much longer than the average renter would. This brings about a sense of belonging and establishment. Homeowners and their children are more likely to feel connected to their neighbors and surrounding community when they stay in their home for a considerable amount of time.
8. Home Warranties
There’s simply nothing worse than coming home from a long day of work and realizing that your A/C isn’t working, your dishwasher went on strike, or your water heater is well…not heating your water. Depending on your home warranty, you could be spending less than $50 per month to insure that you are covered when your home appliances decide that they want to rebel.
All in all, buying a home is not as scary as it may seem. The key to a successful purchase is having the right team of experienced professionals to have you navigate the home buying process. Before buying a home, take some time to research the professionals in your area. Visit their websites, read reviews, and learn their process.
At OVM Financial, it is our goal to make the lending process seamless. We understand that there is no bigger financial decision made in a person’s life than that of home ownership. OVM exists to ensure that the outcome of each transaction is smooth, informative, on-time and life changing. It is our goal to become our client’s mortgage provider for life, by treating the entire process with the respect and care it deserves.