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August 10, 2020

Rent or Buy? 5 Reasons to Buy a Home

Here are five reasons you should make the leap to buy your first home.

If you’re trying to decide if buying your first home is the right move, you’re in the right place. Making the decision to settle into a more permanent place is a great way to increase your wealth, get better tax breaks, and invest in your future. See how investing in a home can improve your life for the long haul.

It’s an investment you can live in.

Unlike buying a car, the value of real estate typically continues to grow over the years in a stable environment. When you invest your money into a home, the value of your home will increase even as you use it. Like buying stock, when you decide to sell, you will, typically, get more back than what you put into it. Your monthly mortgage payment is increasing your equity, not going to a landlord.

Get tax breaks.

Your mortgage payments are tax-deductible. That means you can get a bigger return on your income taxes every year by owning your own home! The newer your mortgage, the higher the interest rate, the greater your tax deduction. New homeowners usually have the greatest tax benefits. This may make owning a home the same or cheaper than paying monthly rent.

Save money monthly.

Many new homeowners find that a monthly mortgage is cheaper than paying rent. A fixed mortgage not only gives you tax breaks, but the payments don’t increase. Unlike rent that rises and is paid to a landlord, you’re equal monthly payments go toward paying off the value of your home. Even if the value of your home doesn’t appreciate over time, most of what you put into it will come back after you sell it. Apart from a refundable security deposit, you wouldn’t get any money back when leaving an apartment.

You’re the boss.

This is one of the most popular reasons many people choose to buy their own home. When you own the house you can do with it as you please. You can paint your room whatever color you want. You can make your home exactly what you want it. The possibilities are endless.

Make sure it’s the right time.

Not being ready can outweigh the benefits of buying your own home. With a stable job, a good financial record, and no plans to move, you’re probably ready to buy your own home. Don’t let outside pressures prevent you from making well-informed decisions. If you are planning to move or recently graduated from college, you may not want to commit to a mortgage. Research all the risks and responsibilities of homeownership before you commit to buying.

No matter where you are in the process of owning a home, it’s always important to weigh the pros and cons. While the input of your loved ones is valuable, it’s important to get the input of those who are experts in the field. Want to continue toward homeownership but don’t know what your next steps should be? Reach out to your local branch and talk to one of our loan officers. We’re always here to help you in your next step toward building a better future.