Let me count the ways…
1. Equity (Investment Value)
Instead of spending cash on rent that you will never see again, you will be building equity (the difference between the market value of a home and what it is currently worth). If you stay in the home long enough, you will have ownership over an asset that has a good chance of appreciating in value. Tell me how else you can find an investment where you borrow a lot of money, pay a (record low) interest rate, and then are able to reap the benefits of any gain?
2. Reap immediate benefits…including but not limited to:
- A place to call home. Sometimes it is the simple things.
- Tax breaks: Property taxes, points on a loan, private mortgage insurance, mortgage interest, among other items are all possible tax deductions. Always keep an eye out for tax credits as well, which the government offers now and then, including credits for making your home more energy efficient.
- Capital gains tax relief when you sell. You will not pay capital gains tax on the first $250,000 you make on the home ($500,000 for couples).
2. Be your own boss
No longer will you have to wait for the landlord to have his local repairman fix your place, or spend time wondering if rent will increase or worst of all possibly having to move out in short notice.
3. A place to make YOURS
You will never truly realize the joy in being able to make a home your own…being able to customize it however you please, until you do own your own place.
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BUT…am I ready to buy?
All you need to do is sit back and look at your personal and financial situation. Do you need the flexibility to move on short notice? Are you unsure of your job situation? These are a few things that would certainly make you think twice about buying. For a complete way to help analyze your situation, and the complete cost differences between buying and renting, contact me!
