Should you rent a home or buy a home? There are four main reasons why owning a home is ultimately better than renting one.
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Should you rent or buy a home? Here are four things for you to consider when making the decision:
1. The average net worth of a renter is lower than that of a homeowner. The average net worth of a renter is $5,000 while the average net worth of a homeowner is $225,000. Buying a home is a great way to automatically save money by paying down the principal for your home every month. Plus, a home is an asset that will always appreciate over a long period of time.
2. It is more expensive to pay rent on a monthly basis than it is to pay off a mortgage. Mortgage rates are fixed for 30 years, while rent rises according to inflation every year when your lease is up.
3. Owning a home comes with tax write-offs. Your mortgage interest and property taxes are deductible, so that will save you a lot of money on your income taxes and you will get a bigger tax return.
4. There are many low down payment options available out there. Here in Phoenix, there are actually several grant programs that can help first-time homebuyers purchase a property for as little as 0% down. You may have to cover some closing costs, but I’ve seen many buyers get into a home for less than $1,000 out of pocket. Buying a home can be less expensive than renting when you have to put down first and last month’s rent.
As you can see, there are many benefits to owning a home rather than renting one. If you have any other questions about buying versus renting or if you would like to learn more about the home buying process, give me a call or send me an email. I would be happy to help you!