Choosing to rent or buy a home is a major life decision. For many, owning a home is a great investment because it allows for stability. For some, renting is a viable choice because one’s life may not allow for such permanence.
I choose to think of home buying versus renting in terms of security versus flexibility. And, more simply, are the long-term benefits and advantages to home buying greater than renting…?
The answer is, YES…especially in this market!!
According to Business Insider, the median apartment rent rose 9.2% through the first half of 2021.
This leads to the question, why pay so much for something you don’t own??
When buying a home, the advantages are almost immediate. Here are a few:
- Freedom: your home is your own! No answering to anyone!
- Set monthly payment-no effects of inflation based on current market values.
- Appreciating investment-Home prices increase on an average of 3.9% per year allowing for a greater return on your investment.
- Build equity-make your monthly payments and track your homes appreciation. You’ll receive this cash when you sell your home.
- Tax benefits-you can deduct mortgage interest, money paid toward mortgage insurance, & property taxes on your federal income tax return.
- Passive income-you may decide that you want your home to be a rental property which could be a steady flow of income.
Home ownership sounds pretty good, right?!
At Agent06, we’ll always lead you in the right direction. There’s no “fluff”, there’s no sugar-coating. We’ll always help you figure out YOUR best path!