If you’re fighting a fear of commitment when it comes to putting down your roots, renting can seem like an attractive short term option. Unfortunately, short term options can quickly turn into long term solutions, and there are plenty of real benefits to buying a home instead of renting.
Here are some of the most important reasons to buy instead of rent in 2019.
Why You Should Buy Instead of Rent
As a renter, you need permission from the landlord before you incorporate any real changes to the interior or exterior of the home.
When you buy a home yourself, you are your own landlord. That means you can do whatever you want to your house. Make upgrades, repaint, or plant a garden, all without having to speak to a property manager first.
2. The home you buy can appreciate in value
When you buy your own home, you won’t just reap benefits in terms of making your own changes and upgrades; you’ll also experience some financial advantages. While a car depreciates in value over time, the home you buy will most likely appreciate in value.
As this happens, it can accrue even faster than a stock would, because you get the appreciation not only on your cash down payment, but also see a return on investment when you decide to sell in the future.
3. Fixed mortgage payments
Rent can change, but mortgage payments are fixed for the duration of your loan. Since your mortgage is likely a big chunk of your monthly budget, this can be helpful in terms of setting expectations and maintaining budget stability throughout your lifetime.
Of course, it is important to keep in mind that you could have other costs associated with owning a home that may fluctuate over the years, like insurance and property taxes, for example.
Luckily, property taxes are tax deductible, making them a small nuisance in the grand scheme of things. If you were a responsible renter, chances are you were already paying renters insurance and this won’t be a new cost for you.
4. It’s an investment in your future
As a renter, it becomes easy to feel like you’re throwing money out into the abyss with each check you write to your landlord. It contributes to sheltering you for the month, but beyond that, you will never see the money again. When you buy a home, you can actually end up making money if you remain in the residence for a good number of years. You can walk away with even more money if you continue living in your home after it’s completely paid off.
5. Tax benefits
As with any loan, you’ll end up paying some interest on your mortgage. The good news is that there are ways to write that interest off as a tax deduction.
Some experts suggest putting the money you get back from these deductions into a high yield deposit account, if possible. This is a great way to ensure your investment continues to pay off over the course of your lifetime.
6. Build your credit
Building credit can be a little intimidating at first, but building and establishing credit is an important milestone. This is because a good credit score is crucial when it comes to borrowing money for most of life’s large and important purchases.
Owning a home is one way you can begin building your credit score. If you make your payments on time and remain financially stable, you’ll have an easier time borrowing money for large purchases in the future.
Let our team help you find the perfect home in Kansas City. Give us a call today! You can reach our team at 913.521.8806. Want to come and see us? Our office is conveniently located at 5000 W. 135th St. Leawood, KS 66224