5 Points to Consider In the Homeownership Debate
1. Rent vs. Mortgage Payment Stability – Your house payment stays the same if/when you have a fixed rate mortgage. The only thing that can change is if your homeowners insurance or taxes change. On the other side, studies show rent is rising significantly in many areas of the country. There is no doubt that your rent will go up.
2. Tax Benefits – The interest paid on your home loan is tax deductible in most cases. Also by owning a home, you could qualify for other tax benefits each April 15th. This can make a significant difference in the taxes you pay as a homeowner.
3. Home Prices Going Up – The low home prices of the recession housing market are going away. Most analysts are predicting significant rises in home values. Increasing home prices are pretty much inevitable. Buying now makes great sense as each year waited will almost insure that you will be paying a higher price for the same house you could afford now. Also, homes should be considered a long-term investment for you and your community. More true owner occupied homes in a neighborhood creates stronger and better neighborhoods.
4. Freedom of Movement – This debate over freedom can go either way. When you rent, you have the freedom to pack up and move if your job relocates you. However, with a house you have more internal freedoms. You can make the house your little private piece of the world. You can remodel, decorate and make things to your own style and taste. Rentals don’t usually allow you to do this, and if you do you have to change it back before you move. A house you own is yours and you can make it into anything you want to it be.
5. Value Added to Your Life- In a recent article by the National Association of Realtors their Chief Economist, Lawrence Yun, stated, “The most telling evidence of the contradictory nature of our times is reflected in the net worth of home owners versus renters. On average, home owners have a median worth of nearly $200,000, while renters are essentially living paycheck to paycheck, with only $4,000 in net worth on average.”
We’re not so naïve as to think that everyone should buy a home, but we think every renter needs to review these 5 points at a minimum to determining if Home Ownership is for them.
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