As time moves on, it’s common to want to find a place of your own to settle into and get comfortable. Making that transition can be quite the commitment. To get you motivated, here are 5 reasons why it is better to buy than rent a house in Essex County. However, you really do need an agent willing to uncover the gems and work for you! AND please do not go to open houses – the Listing Agent represents the SELLER – always every day all day long!
If Rent is Higher or the Same as Buying
This may seem counter-intuitive because the luxury of renting is you are free to move around – right? Your not tied down. Well, that is true but there is something call hindsight. If you are paying rent but could afford to buy a condo or a starter house that may be better for you because you will be able to have two options: 1) Keep it in your portfolio as an asset and rent it int he future or 2) use the equity to buy a larger home when the time is right, if ever.
The biggest concern of renting is annual rent increases – Buying a house does come with its substantial upfront costs, but these will pay exponential dividends compared to renting.
On top of that, rent doesn’t come with an expiration, but a mortgage is a loan with a set price paid back over many years. On a long enough timeline, you’re easily going to pay more in rent than you would pay back a home loan, making the long-term cost savings a reason it’s better to buy than rent. I’ll show you too a trick I learned from my own mistakes on how to save years off your mortgage without paying more and yes it is legal!
A Solid Investment
Once you purchase a home and begin paying your mortgage, you start to build what is called equity.
Equity is the value of the home you have paid off and your financial investment in the property. As your equity in your home builds over time this will also increase your net worth.
Building your net worth and equity can have an effect on your ability to get lines of credit and loans in the future. By owning a home and responsibly paying for it, you could be opening additional financial doors for yourself at a later date.
Possibility of Windfalls
Traditionally, the real estate market has been incredibly stable and is seen as a great way for anyone to build up their financial strength over time.
In part due to this market stability, housing has a tendency to increase – or appreciate – in value over time. This provides another fiscal bonus to you if you choose or need to sell your home later, and makes it another reason it is better to buy than rent.
Save on Your Taxes
Along with all of these other incentives for owning a home, you could end up saving money on your taxes in the form of more available tax deductions.
Some of the deductions for which you could potentially qualify include property taxes, mortgage interest payments, private mortgage insurance premiums, and even energy-efficient appliances and home additions. Doing some research on what appliances and home additions could provide you with the highest return on investment will make this an even more appealing situation.
Your Own Piece of the Pie
Finally, the feeling of pride in owning your home and the work you have done to make it what it is cannot be factored out as a reason it’s better to buy than rent.
By owning the property, you have more freedom and flexibility to shape it the way you see fit.
Your home won’t truly feel like your home until you get to make the decisions that shape the look and feel of the entire property, as well as the added privacy of having your own space. Without any landlord or maintenance people around, you will have a much greater sense of peace and quiet.