The "rent vs. own" debate is one many individuals struggle with in their lifetime - but the American Dream of homeownership is alive and well. Recent reports show that the U.S. homeownership rate has rebounded from recent lows and is headed in the right direction. The personal reasons to own differ for each buyer, but there are many basic similarities.
Today we want to talk to you about our top 7 reasons we believe you should own your own home instead of renting.
Homeownership builds wealth.
A home is one of the best investments you can make in your lifetime. When you buy a home, you can build equity.
Homeownership is a form of forced savings.
Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, you guarantee your landlord is the one who gets all that equity.
Homeownership provides tax benefits.
One way to save on taxes is to own your own home. You may be able to deduct your mortgage interest, property taxes, and profits from selling your home, but make sure to always check with your accountant first to find out which tax advantages apply to your situation and your area. Being a homeowner comes with many additional potential tax benefits.
Homeownership allows you to lock in your monthly housing cost.
This means no surprise rent increases. When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 15, or 30 years. In 2018, the typical 30 year fixed rate mortgage has been around 4.31%, still close to record lows. The value of your home will continue to rise with inflation, but your monthly costs will not. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment – along with a profit margin!
Homeownership increases your net worth.
The Federal Reserve’s Survey of Consumer Finances found that a homeowner’s net worth is 40x greater than that of a renter.
Homeownership lets you have choices.
Decorate and landscape the way you want!
No other investment lets you live inside of it.
You can choose to invest your money in gold or the stock market, but you will still need somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.
Bottom line: NOT owning a home could cost you a lot of money. Ready to learn more? Contact your Waterstone Mortgage loan originator, or find one near you.