As you know, buying a home is a big decision to make as my good friend Loan Officer Vincent Redd discussed with me recently. We talked about the importance of a Tenant accepting the fact of every month they make a rent payment they are most likely helping a Landlord to make a mortgage payment without the benefits of making a mortgage payment.
It is a nice benefit to just allow Vincent to help you determine if home ownership is an option for you, and the inquiry does not obligate you to doing anything with the knowledge. Please consider the following advice.
However, when a buyer is stuck between renting and owning, it's easy to see why home ownership is most beneficial.
If for some reason inflation went wild, a homeowner would be able to protect themselves from being left out to the streets. The homeowner is the only one that owns the keys to their home.
When an individual buys a home, they’re making a lifetime investment. Through monthly payments, they increase the amount of the home they have control over. It also increases the value of the home and the value of the equity the homeowner has invested into the property. Renters on the other hand, don’t have much to show for their monthly payments.
Each year during tax time, we could also use a little assistance. A homeowner can deduct real estate property tax, some or all of the interest on the mortgage and the cost of insurance for the property. This cannot be done for those who rent.
The mortgage payment includes both interest and principle payments. Even though the borrower pays more interest in the beginning, as time passes, they pay more toward the principle. Even so, the payment toward the principle will be less than a monthly rent payment (money that’s thrown away to the landlord).
When a homeowner purchases a home with a small percent down and the home appreciates in value by that same amount, then the homeowner has increased their equity in the home by 100%.
A homeowner makes all the calls. Whether they want to paint the walls or plant a garden, it’s their decision. A renter does not have this freedom.
Whereas rent increases every year, a homeowner will have the same payment month after month (given that they have a fixed-rate mortgage). A homeowner will know what to expect and will have a feeling of stability knowing their payment won’t increase.
When a homeowner owns a home, it’s all theirs. They’ve worked hard to achieve the home of their dreams and can feel good about making such a huge accomplishment.
Those looking to buy should definitely consider home ownership for these reasons. Those who are renting should seriously consider making the decision to switch.