8 Reasons You Should Buy A Home To Build Equity and Stop Renting
Those that are looking to move into a new home will need to choose between renting or owning their property. While there are some advantages that come with renting a property in some situations, owning a property often provides owners with many long-term benefits. There are 8 reasons to buy a home to build equity and receive other benefits as well that should be taken into consideration.
Start Building Equity
One of the reasons why you should stop renting and purchase a home is because you can start building equity. When you pay rent, all of your payments will go to your landlord. When you own your home, you can start building your personal equity. Each month, a portion of your housing payment will go towards paying down your mortgage. Further, property values tend to increase over time. Due to this, you will slowly build personal equity and net worth by simply owning your property.
Receive Tax Deductions
Another financial advantage that comes with owning a home is that you can receive tax deductions. There are several forms of deductions that you can receive, which include being able to write off your mortgage interest costs and real estate tax expenses. This can help to reduce your state and federal tax liability in some situations. There are no similar tax benefits for renters.
Stable Place to Live
Owning a property is also a good idea because it will give you a stable place to live. When renting a home, you will only have the right to live there for the term of the lease. Once that is over, you may be forced to move. If you are looking for a stable place to call home, owning a property is ideal as you can live in the same place for as long as you want.
Ability to Make it Your Own
Another advantage of buying your home instead of renting is that you can make it your own. If you rent a home, you are going to have very little control over the design of the property. Making even minor changes to the property will require your landlord’s approval. If you choose to own your property, you will be free to renovate, paint, or redesign your home in any way that you want. This can help you personalize your residence and make it feel more like home.
Stable Housing Expense
If you are going to rent a home, you should expect that your monthly rent price will continue to go up each year. Landlords tend to follow the market rental rates, which will at least go up by a few percent each year. This compares to your housing expenses that tend to be much more flat. While insurance and real estate taxes may increase, those with a fixed-rate mortgage will enjoy the same payment for up to 30 years. When accounting for inflation, this effectively makes the payment more affordable each year.
Pride of Ownership
Finally, owning a home is a big achievement that you can be proud of. When you own your home, you are going to feel great about yourself and where you live. This will result in you putting more effort and time into caring for your home and making it look great. This will then result in even higher increases in property values.
Access to Affordable Debt
Having a home also provides you with access to more affordable debt. Mortgage interest rates are at historically low levels. If you have equity in your home, you could qualify for a cash-out mortgage or open up a home equity line of credit. You can then use these loan proceeds for any purpose that you wish including home renovations, consolidate debt, or build a personal emergency cash fund.
Fewer Expenses Associated with Moving
If you own a property, you are far more likely to stay in your home one year after the next. Those that rent will end up spending a lot more money on annual moving costs, furniture and decorations, and other related expenses. Over time, this will give you a lot of extra money that could be invested back into your house if you choose to purchase your home.
There are many different options to consider when looking to move into a new home. While renting is a good option for some people, owning a property is almost always a better long-term option. There are eight reasons in particular why you should stop renting and instead purchase your next home.