I speak with so many people that are apprehensive about purchasing a home because they are uncomfortable taking on the (massive, very serious) obligation of a mortgage. But I think many forget to realize that, unless you are living with your parents without rent, you are paying for shelter - either your own house note or your landlord’s house note.
Think about it. There are tax incentives to owning a home, which are great little perks when you file yearly. And, if you purchase with a 30-year fixed rate mortgage, your ‘housing budget’ is locked over the thirty years by and large (with exception to taxes or insurance rates increasing). If you rent, the one guarantee you WILL have is that your rent will increase over that same timeframe, sometimes yearly!
As an owner, the mortgage payment can be viewed as a ‘forced savings’ which will allow you to have equity in your home, that you can tap into later in your life if needed. As a renter, you only guarantee that the landlord has that equity.
Bottom Line? Whether you are looking for a home of your own for the first time or are considering a vacation home, owning usually makes more sense than renting - especially with home values and interest rates are still lower than projected.
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