Are you thinking of purchasing your first home? Weighing the pros and cons can be an overwhelming process, but here are some of the benefits of home ownership you will want to consider when making the rent vs. buy decision.
Financial Benefits
The cost of purchasing a home is likely one of the factors you first considered, and perhaps you experienced some sticker shock, but the financial benefits of owning a home vs. renting extend well beyond the price tag.
Purchasing a home actually puts you on the road to building wealth. Instead of writing a monthly rent check for an amount you will never see again, your mortgage payment goes towards building equity in your home, the amount of your home that you own less the debt associated with it. Your home becomes an asset, and provides you with borrowing power, a definite advantage over renting.
As a renter, you may have experienced periodic rent increases, and nothing is more frustrating than paying more and getting nothing more in return. Depending on what type of home loan you acquire, you will have the security of fixed mortgage payments, meaning that your monthly housing costs are guaranteed to stay the same year after year.
Maybe you are concerned about making such an investment in this economy, but real estate is still one of the safest investments you can make for the future. Over the past forty years, real estate has continued to appreciate over the long term, despite changes in the economic cycle.
Finally, you will be really happy you chose to buy come tax time. The government offers homeowners several tax breaks, including deductions for mortgage interest and property tax…do you remember ever writing off part of your rent on your tax form? Just another financial benefit of investing in a home.
Watch for next week, when Sold on Sunday will discuss the personal benefits of owning a home.
Are you considering buying a home in the Greater Boston area? In addition to the benefits listed above, Sold on Sunday also offers homebuyers a cash rebate on selling commissions through our Buyer Rebate Program. Call us at 781.910.7155 or info@soldonsunday.com for more information today!
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