The long-awaited dream of owning your own home entails one of the most important purchases of your life. Is it any wonder it could also be the most exciting? Moving from renting to homeownership brings a range of benefits, from a sense of community and stability to never having to worry about yearly rental increases. But there’s more. We explore three advantages that tend to sway long-time renters into becoming happy homeowners.
1. Live life on your own terms: As a homeowner, you can delight in the freedom to paint the walls, wallpaper a bedroom and landscape as you’d like, knowing that a landlord won’t be calling in to express his objection to the improvements. The walls and grounds are yours to enjoy. What’s more, you can choose to own pets, hire your own contractors and move to a new home according to your timeframe—not that of the lease.
Note! Communities with HOAs or covenants may have guidelines for exterior home improvements. Be sure to check the rules before you start a project (especially when it comes to exterior paint)!
2. Possible tax advantages: When you own a home, you may be able to deduct a portion of mortgage interest and property taxes from your federal and state income taxes. It’s possible that this could result in significant savings, especially in the first few years of the mortgage loan when interest makes up the majority of the payment. Consult a tax advisor regarding your particular situation. As a renter, on the other hand, you would not likely be eligible for any type of benefit.
3. Potential to build equity: If your home increases in value over time, you’ll have the opportunity to build equity, allowing you the potential flexibility to take out a second loan for home improvements, tuition, emergency expenses and more. Unfortunately, renting will only put money in the pocket of your landlord.
Certainly, this list is just a start. You probably have even more reasons to buy that are important to you. If your personal 2015 goals include more privacy and fewer household moves, owning a home will most likely be a positive experience. Long-time renters may find it advantageous to make a list of all the pros and cons of both owning and renting, weighing the elements that are the most important at this point in life. If the pros win out, you can look forward to hunting for your perfect home and enjoying all the benefits of living life as you’ve always imagined.
Our First-time Homebuyer Guide is a great resource. Download your copy today!
Ready to transition from a rental to your own home? Get started today at RichmondAmerican.com.