7 Reasons Why You Should Stop Renting and Buy A Home in Montgomery County
Living in the Montgomery County area can be a great experience for anyone. In this area, there are plenty of job opportunities as well as exciting recreational activities to take advantage of. While many people in this area do rent their homes, buying could be a much better option for someone to consider. There are seven reasons why you should consider owning a home instead of renting your property here.
Build Long-Term Equity
A primary benefit that comes when you purchase a home is you will earn long-term financial benefits. Property owners can see their personal equity increase in several different ways. To start, when you pay a mortgage on a monthly basis, you will slowly be paying down the balance. This will increase the amount of equity that you have in your property. Further, property values tend to go up over time, which will provide you with even more personal equity in the future when you go to sell your home.
Take Advantage of Low-Interest Rates
Today is a great time to purchase a home because you will be able to take advantage of low-interest rates. The interest rate that you will pay on a mortgage will have a dramatic impact on your total monthly payment. With interest rates near all-time lows, you can have a very affordable monthly payment. It will also provide you with the opportunity to continue to pay a higher amount, but pay off your home even faster.
Hedge Against Inflation
One challenge that can come with paying rent to a landlord each year is that your payment will continue to go up. While a three to five percent rise from one year to the next may not seem like much, it does add up quickly over time. At a five percent annual increase, your rent payment will be 22% higher within just four years. While this may be comparable to other rising costs, you have the ability to hedge against inflation when you purchase a home. While tax and insurance costs tend to rise over time, your mortgage payment will stay for the entire term of the loan if you have a fixed-rate mortgage. When accounting for inflation, this makes your home payment more affordable each year.
Have a Stable and Consistent Place to Live
If you are a renter, you always run the risk that you may not be able to renew your lease when the term is over. This could be due to the fact that the rent has gotten too expensive or the landlord simply decides that they no longer want to lease out your home. This instability can be stressful for someone that wants to be able to put down roots. If you decide to purchase your home, you will have full control over if and when you move. This stability could benefit you and your family for a long time.
Make Home Your Own
When you purchase a property, you are also going to be able to make the property into what you want. All people have their own unique style and tastes and will likely want to decorate and design their homes accordingly. If you are a property owner, you will have full control over the design of your property. This will also allow you to make major renovations as the years go by. When you are a renter, you are going to have far less control. In many cases, even painting a room will require that you get approval.
Property ownership also comes with a variety of tax advantages. When you spend a certain amount on interest and real estate taxes each year, the expenses could exceed your standard deduction. This will allow you to itemize your deductions, which opens up the opportunity to other deductions as well. Ultimately, this could help to lower both your state and federal income tax bill.
Future Income Potential
Most of the time, when someone decides on buying a home, they will intend to live in it as their primary residence. However, as the years go by, you may decide that you want to move to a different town or need more space. While you could sell your property and take your money out of it, another option would be to rent it out. When you purchase a home and do this, it will give you the ability to earn some passive income and continue to build equity in your home.
Ultimately, owning a property provides someone with a variety of short-term and long-term benefits. In the Montgomery County, PA area, property owners will be able to benefit as well.