Tuesday, April 22, 2014

The Perks of Owning Your Home Compared to Renting

Rent vs Buying Buying a home is a big decision, but with the housing market on the rise it is more cost effective for you to buy now. If you are on the fence about renting vs. owning, here are some things to consider. First of all, when you own your own home, you have the freedom to decorate, remodel or alter the landscaping however you choose. You gain a sense of belonging in the community and gain more self confidence in reaching your goals. Then there is of course the financial benefits of owning your own home.

When it comes to the financial benefits of buying a home, here is one way to see why now is the best time to buy. Let’s say your dream costs $250,000 today, at 4.41% interest, your monthly principle and interest mortgage payment would be $1,253.38. Then let’s say you decide to wait to own for another year, with the rates and prices increasing, the same home costs $270,000, at a 5.7% monthly interest. That makes your monthly payment at   $1,567.08; a $313.70 difference in monthly payments. Now looking at it over the long term (30 years) you would have saved $112,932 over that time by buying now.

Still on the fence about buying? For many, the idea of taking on a mortgage can be intimidating. However, unless you are living with your parents, you are paying a mortgage ~ either yours or your landlords. When you look at it that way, doesn’t it make more sense to invest in your own property (where there is an actually return on your investment) than on someone else’s?

Some other benefits to owning your home are:
  • You can build equity in your home

  • Your mortgage payment could be tax deductible

  • More privacy with a home

  • Fixed payment, your rent could always go up

  • Pride of ownership 

What is holding you back from moving forward to buying your own home? Give us a call today at 801-774-1615 to find out what we can do for you.

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