We bought our first home back in October 2010, we are coming up on the two years of home ownership and I am thrilled at saying I am a home owner. I totally understand there is a season for renting, trust me I have been there until almost two years ago. I do, however, think when you are at a place in your life and all things are lining up to be able to do so, buying a home is a step all people should look into. Today I want to share with you 10 reasons I think you should consider buying over renting, when you get to a point in your life it’s an option.
- It’s a great investment. More often than not (excluding when the housing market falls) it appreciates in value which means you are making a gain. That can pay off down the road. Other than savings accoungs/IRA’s/trust funds/etc. there aren’t many things you can say you invest in and have more of a chance to appreciate than depreciate.
- As of right now in 2012, it is still a buyers market in most areas. The house we bought in 2010 is worth much more than we got it for and that’s something big. If, at this time, things are at a point you can look into buying look around for foreclosures and short sales so you will automatically have money into the house without actually putting it into it if that makes sense. You might see a house for sale and they are asking 115,000 but it could be worth 150,00 (property and house value combined). That’s like having 45,000 into your financial future already. The housing market will rise again, I fully believe that so why not invest while it’s a buyers market.
- Interest rates are fairly good at most places. We got our interest rate at 5.5% when we bought but they are now around 3.75%, that’s a lot when you are buying a home. Get in while the interest rate is good.
- Tax breaks. You know all that dreaded interest and real estate taxes we pay on our home loans. Every year when it’s time to face Uncle Sam you can deduct those and trust me that is a fun deduction that can make the difference between owing and not owing or getting back a little or getting back a nice chunk. And really who doesn’t like to get back a nice chunk at tax time.
- In the area I live now as well as so many other areas there is array of homes to choose from. There was a time you had to search high and low to find a home and what you had to spend may have meant not getting the home you wanted. Today that’s not the case in many areas. With so many homes up for sale in so many areas and at great values this may be the time you find the home of your dreams at the perfect price.
- You aren’t throwing money away. Rent goes to nothing (unless you are doing a rent to own) and so that money is gone and never coming back and you will have nothing to show for it. As a home owner the money you put into the house has the chance of coming back (plus more if you’re lucky) should you decide to sell and move to a new home.
- It is yours, you can do what you want with it. If you want to remodel your kitchen you can do that. Want a walk in closet the size of a bedroom (yes please) build it. With no landlord to answer to the possibilities are endless.
- As a home owner it will help your credit. I didn’t have the best credit score thanks to silly young mistakes but since owning a home (and paying off debts) I have noticed the score has risen. Make your payments on time and don’t skip them and see what happens to your credit scores.
- You aren’t set to a time limit. When you rent, more often than not, you sign a lease. While some landlords will go month to month after the lease is up, you aren’t guaranteed to get to stay. If someone comes in that will rent long term they could make you pack up and leave (in 30 days of course). Peace of mind knowing that you won’t be kicked to the curb is worth quite a lot if you ask me.
- You don’t have to come up with first month, last months, deposit (and pet deposit if you have one). For some coming up with two months rent alone would be a struggle. When you buy a home, chances are after you sign you will have a month or so before your payments start and it’s a great way to make sure you are covered should something happen.
There are so many things to consider when buying a home…what type of loan you will go with, compare mortgage insurance, and so much more. I fully believe this is a step that will better your life. What are some of your reasons to own over renting?
Check out some more information on Home Ownership:
Information in this post brought to you by Genworth Financial. All thoughts are my own and always honest. For more on my policies please see my disclosure in the PR Friendly area.