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Latest posts by Gea Elika (see all)
- Buying vs. Renting – 13 Reasons on Whether You Should in NYC - March 23, 2018
- Due Diligence for NYC Real Estate Purchases - March 20, 2018
- 10 Things to Know about Buying Investment Properties in NYC - March 17, 2018
Have you been renting for a long time? Is your rent cheap? Do you have a friendly landlord? Have you been able to make modifications you wanted? Do you consider your apartment your home? If this sounds like you then why would you want to leave and find a different place to live? Well, buying a home is a smart move.
When it comes to getting ready for retirement, many financial experts have found that homeowners have the advantage. For some, saving for retirement may not be an incentive; however, owners tend to be better financially responsible overall. An example would be buying your first home when you’re 30yrs and upgrading at 35yrs. If this is the case, then you can pay off your total mortgage by 60yrs of age.
This means you have twenty-five years to pay off your entire debt. After paying off your mortgage debt, you will have the total of your monthly mortgage payment available for other purchases.
ADDITIONAL BENEFITS TO CONSIDER AS WELL
1. End of the year tax deductions
Everyone wants to save money on taxes. You get no tax breaks from paying rent, although when you buy a home, you will be able to deduct the interest your mortgage and most of your payments in the early stages that are related to interest. From April 15th, 2009, you can also deduct your property taxes; this means you can save a lot of money right away.
2. Being able to significantly increase the value of your assets
You can often realize a large Capital Gain on your home if you stay in it for up to 25 years. Statistics also show that the national home price in the U.S. has risen 200%+ since 1968. You can get this type of return on most investments. Often your home value will keep up with inflation in addition to one or two percent.
3. Building Equity
So you are trying to pay off your mortgage. In the process, you are building up equity in your home and as a result, you own more of your home as you pay off your mortgage. Again, you don’t get this benefit from renting. Your mortgage can be considered a forced savings plan which pays you back later on in life.
4. More borrowing power
If you rent you may have experienced difficulty borrowing money. Even if you get approval for any sort of loan, the interest rates are likely to be high, whereas those who own a home have something, they can use to borrow against. Homeowners are considered more secure by lenders, which is another benefit to gathering equity, the equity you build up in your home allows you to secure loans easier
5. Gaining financial Stability
The amount of rent you pay is up to the owner of the apartment which means you can negotiate terms such as no increase in rent for five years. However, when you own a home, you will be able to lock in your interest rates for up to thirty years. Homeowners know exactly what they pay each month towards their mortgage for the entire time, which you cannot do when renting.
6. Choose and make the home you want
If you have the money to pay for your home then you can make all the changes you want, you own the home so you can choose how to furnish it, decorate it and how much to spend on renovations. You won’t be fined for scratches in the paint, and you can choose to make upgrades, you won’t lose them as you would if you rented.