At some point in your adult life you will be faced with the decision as to whether you should buy or rent a home. You have to pay to live either way but buying a home is a big commitment so you need to be mentally and financially ready to take on that burden. This is a very serious commitment so if you are still sitting on the fence, here are 5 reasons to buy instead of renting.
- Stop paying someone else’s mortgage
When you pay rent every month you are you’re paying money towards your landlord’s mortgage as opposed to your own. Renting comes with far fewer hassles or responsibilities but it is just another bill. When you pay your own mortgage you’re building an asset and building equity in your own home instead of someone else’s real estate portfolio.
- Mortgage Interest is tax deductible
While there are constantly changes in the tax code where the state and local tax deductions are capped or even eliminated, the tax code still permits deductions when it comes to your mortgage. It will allow deductions up to a certain amount. In most cases you will end up paying less taxes when you own rather than renting.
- State and local tax deductions
If you live in a state that carries a higher tax burden, New York for example, where you are paying state income taxes, real estate taxes and other taxes. You need to take into consideration the $10,000 limit and how it shouldn’t deter you from buying property.
- Pride in owning something that is yours
When you rent you are just a tenant, you have no responsibilities as far as maintenance goes but by the same token you have no ability to make any changes either. You may be able to paint the walls but you won’t be able to do basic maintenance either. You can’t fix a broken boiler or do any other maintenance tasks, you have no choice but to wait for the landlord to make repairs. If your own home you can take pride in the work you do around your home and it being in immaculate condition.
- Customize it to how you want
This goes hand in hand with pride of ownership, as a tenant you have no say about any of the rooms in your apartment. Often times you aren’t even allowed to paint the walls a different color. You can do very little to make the home your own. As a home owner you have carte blanche in how you want your home to look. You can gut your kitchen and completely renovate, want to change your old tub for a spa tub, that’s no problem either.