Should you rent a home or buy a home? There are four main reasons why owning a home is ultimately better than renting one.
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Should you rent or buy a home? Here are four things for you to consider when making the decision:
1. The average net worth of a renter is lower than that of a homeowner. The average net worth of a renter is $5,000 while the average net worth of a homeowner is $225,000. Buying a home is a great way to automatically save money by paying down the principal for your home every month. Plus, a home is an asset that will always appreciate over a long period of time.
2. It is more expensive to pay rent on a monthly basis than it is to pay off a mortgage. Mortgage rates are fixed for 30 years, while rent rises according to inflation every year when your lease is up.
Your mortgage payment will stay the same, but rent always goes up.
3. Owning a home comes with tax write-offs. Your mortgage interest and property taxes are deductible, so that will save you a lot of money on your income taxes and you will get a bigger tax return.
4. There are many low down payment options available out there. Here in Phoenix, there are actually several grant programs that can help first-time homebuyers purchase a property for as little as 0% down. You may have to cover some closing costs, but I’ve seen many buyers get into a home for less than $1,000 out of pocket. Buying a home can be less expensive than renting when you have to put down first and last month’s rent.
As you can see, there are many benefits to owning a home rather than renting one. If you have any other questions about buying versus renting or if you would like to learn more about the home buying process, give me a call or send me an email. I would be happy to help you!
