How long have you been paying rent? 1 year? 5? Why? Renting doesn’t build your credit, your monthly payment is subject to the whims of the landlord or rental company, and if you want to upgrade your rental, you must have permission first and when you leave, the upgrade stays. Other than a place to live, renting a home, condo, or apartment does very little to improve your life. Maybe it’s time to own a home in Colorado. To help with that decision, here are the 5 Best Reasons to Buy Rather than Rent.
Owning a Home Can Offer Security & Financial Stability
One of the steps of negotiating your mortgage is setting a monthly payment and, even with the roller-coaster rides of interest rates, that payment stays the same. You don’t have to worry about your expenses changing with housing demands. Financial budgeting becomes easier for the long term, not just until the lease is up.
Building Home Equity
This is often a confusing term. In a nut shell, (Equity) = (Market value of the home) – (Amount of the loan still owed). So if your home is valued at $350k and you still owe $125k, your home has an equity value of $225k! This comes in handy as collateral for other loans such as second mortgages or home improvement loans that will further increase its value!
Interest… What Are the Tax Benefits?
Another benefit of your mortgage is that the IRS has provisions wherein you can deduct the interest you paid on the loan (https://www.irs.gov/publications/p936/ar02.html). Imagine getting that money back at tax time! Even if you take out a second or third mortgage, you can still write-off the interest, especially if you use the money to upgrade your home.
Improvements
While we’re on the subject of upgrades, wouldn’t it be nice to paint the walls any color you want without having to beg anyone other than your spouse? By owning your home, you can. Any improvements you choose to make are up to you and not subject to someone else’s desires or strictures. So you can paint a room, change the floor, tear down a wall, or install new appliances and the only person who can say NO! is you.
Quality of Life
Let’s face it, when you are dependent on a landlord or rental company for repairs, it may be days or weeks before any problem is attended to. They have the final say of IF or WHEN a repair is needed. However, when it’s your home, you get to make that decision. The call to the plumber happens today, not next week. No more will you have to deal with a leaky tub or shorted light socket. The power is in your hands.
Renting may be beneficial for the short term while you build up credit and down payment, but when you first take possession of the keys to a home you own, the feeling is incredible. You know that you are improving your credit, your finances, your peace of mind, and your life. You are no longer subject to capricious landlords or corporate rental companies but master of your own domain. Enjoy it!
When you want a realtor who will make you their number one priority, it’s time to contact me to set up an initial consultation. Feel free to call True Performance Real Estate today and any questions you might have about selling your home!
Call: 303-317-6311