With interest rates at an all-time low, it’s the perfect time to consider all of your family’s options for the future.
According to a Rent vs Buy Report from Trulia, buying is now 33% cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
If you’re considering making the jump from renting into homeownership, here are some advantages that may be on your horizon:
1) Cost Savings
Owning your home often means a lower monthly payment. There are a list of rationale as to why, but one major factor is that rental property owners typically have to inflate their own monthly costs in order to maximize profits. When you’re a homeowner, you’re not paying a premium to rent on top of a bank loan – you’re the owner of the base level mortgage, which means lower overall monthly costs.
2) Investment Opportunity
When you make a rental payment, you are helping to pay off your landlord’s mortgage and adding equity on their ownership. However, when you have a home mortgage, you increase your degree of ownership with every payment. While renting can offer short term financial benefits, building a long-term investment through buying can pay far greater dividends down the road.
3) Tax Deductions
Homeowners can deduct mortgage interest as well as property taxes, a benefit not applicable to renters. Additionally, if you meet certain requirements the IRS won’t apply a “capital gains” tax on your profits from the sale of your home. If you work from a home office, you are also eligible for greater deductions. And if you’re a disabled veteran, Texas is one of few states that offer you up to 100% exemption from property taxes.
In conclusion, owning a home can be more beneficial in the long run, due to the amount of equity acquired. If you’re considering making the switch to a more stable lifestyle, start by browsing our available homes.