Why It Is Better To Buy vs. Rent In The Northwest Valley
If you’re currently renting, you’ve probably heard more than once that it’s better to buy than rent. You’ve probably heard a lot of different reasons for this as well. The undeniable financial benefits are the most compelling reasons why it is better to buy vs rent in the Northwest Valley.
Rents Go Up
One of the best reasons to buy vs. rent in the Northwest Valley is the stability of knowing your monthly housing costs. When you own your own home, you are not relying on your landlord and hoping he/she doesn’t raise your rent. Unless you are in a rent-controlled area, your monthly rent can increase at any time.
Automatic Savings Account
While you do have to have a place to live, the old argument that rent is wasted money has some truth in it. You are paying a monthly mortgage payment,so the question is, who are you paying? When you rent, you are paying your landlord. Your landlord is building equity. When you pay your mortgage, you are building equity yourself and while you do pay interest every month, some of that monthly payment goes towards the principal-this is the equity. Think of it like an automatic or forced savings account.
Appreciation and More
Another reason why it is better to buy vs. rent in Northwest Valley is that buying a home is usually a good investment. Over time, your house will appreciate, it may seem like a small amount at first, but it adds up. Home ownership is the only investment that you can live in.
Most of the time, homes appreciate over the years – they increase in value over the long haul. The home -appreciation value is usually at least 3% (often more), which is considered a pretty decent return on stock investments. In addition, if you sell your home at some point, you will be exempt from paying taxes on the money gained through appreciation.
Finally, it is better to buy vs. rent in the Northwest Valley is the tax benefits. When you rent, there are no tax benefits to you. When you become a homeowner, you can deduct mortgage interest and property taxes each year when you file your federal income tax return.
Here’s an example. Suppose you purchased your home for a sale price of $300,000, with a 10% down payment ($30,000). Using fairly standard calculations, your total monthly housing cost would be about $1,700, including mortgage payment, property taxes, insurance, and mortgage insurance. Your tax deductions for mortgage interest and property taxes would save you approximately $335 per month, which would make your monthly housing cost closer to $1,400.
In some cases, it may be more affordable to own rather than rent, that’s before we consider the automatic savings and appreciation.
Now that you’re convinced about why it is better to buy vs. rent in Northwest Valley, the next step is to look into buying. And it’s always best to enlist the aid of qualified real estate professionals for such a huge, life-impacting purchase.
Send us a message or give us a call today to let us know what you are looking for! We can help you determine if you should buy vs. rent! (602) 806-8834!
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