We all want to buy a home for ourselves, a place that we can call our own!! If you are planning on a mortgage, you may be tempted to rent a home instead. This is one trap that you should not fall into. Always realize that buying a home is a long term gain while renting is just a short term fix.
Buying a home is best option today as the rates offered are so low that nowadays we have the maximum number of home owners in USA then any other time. Renting is on the low, while ownership of homes is on the rise. Even Federal Surveys have found that wealth accumulated by home owners vastly beats the rent payers. All agree that interest rates are going to bottom out, if they haven’t already, so in future cost of buying a house will increase sharply as compared to today.
If you are deciding on whether you should buy or rent a house, consider the following:
- Plan of stay: If you plan on staying in your house for at least 2 years or more, you will end up paying more money if you rent. In most markets, after 2 years houses appreciate in value making it a good investment. After 2 years of home owner-ship you will also experience significant tax breaks if you decide to sell your house.
- Ownership hassles: Other will try and scare you that there will be major ownership hassles and responsibilities like, you will have to take care of roofing and plumbing and the yard etc. Most of these responsibilities are common in renting as well, however if you damage a house you are renting you have to deal with a landlord, whereas if it is your house you can take care of it your way on your terms.
Renting works only if you are living in the city temporarily, even if you have financial debts or bad credit we can help you. We have programs to help you consolidate your debts and get you into a house that will help your financial goals.
Over 90% of millionaires either made or put their money in real estate and it all starts with that first house. The national average of appreciation each year for a single family residence is 10%. Consider this example to compare the financial gain when buying vs. renting. If you buy a house for $280,000 and its market value increases just 10% each year, in 2 years the amount of money your house will have increased is $56,000 dollars. And in addition if you have been paying on average $100 a month towards your principle you will have added another $2,400 to your profit. As opposed to someone renting for the same amount of time. The will have been paying 100% of their money to their Land Lord and they will have nothing in terms of equity or financial increase.
When you buy a home, you get lot of tax benefits as well. Although mortgage interest is a large part of your housing payment, you can deduct this interest from your taxable income on your federal income tax return. In fact in some states you can do that on your state income tax return as well. This will save you a fairly substantial amount of income tax.
In addition, you can pay property taxes on a home that you own. The property taxes are also deductible from taxable income on the federal income tax return and some state income tax returns. All these are additional income tax savings. Thus in total buying is better option then renting in all cases.
Contact us so we can help you in achieving your dreams of owning a property
