Reasons You Should Stop Renting Today and Buy a Home! Buyer’s Financial Assistance and a Real Estate Market on the upswing makes the choice to purchase a home easy.
Everyone has a little different lifestyle with personal situations and preferences that can vary quite a bit from one person to the next. Therefore, trying to find the right answer to the rent vs. buy equation should be a decision that takes many factors into account. If you happen to enjoy changing locations quite often or have a job that requires you constantly move, then buying a home may not be the best choice for you. However, for most people, the benefits of purchasing a home are significant both from a financial perspective and personal perspective.
Many first-time home buyers get discouraged before they even have a chance to get a real start on buying their first home, due to the complexities involved with obtaining a mortgage, finding the right property and having the cash on hand for a down payment to successfully close. If you have never purchased a home before, it is a process you shouldn’t take on all by yourself. In fact, one of the first items on your “to-do” list should be choosing an experienced realtor that can help you through the process.
A good broker with 20 to 35 + years’ experience can save you countless headaches and many potential problems as you make your way through the home buying process. While they cannot make all the issues that can arise simply disappear, with their experience they can guide you through any problems and make the entire process much easier. Additionally, working with a seasoned broker can have big financial benefits as well, as some offer special programs such as down payment assistance and buyer cash back programs.
However, once you choose your expert realtor to partner with, there are many excellent benefits and reasons to follow through with purchasing your first home.
New Programs and other Real Estate Market Predictions Help Answer If You Should Rent vs. Buy
Money in Your Pocket-Long-Term Investment Instead of Throwing Money Away
Renting might be a good fit for your lifestyle but, unfortunately, every time you pay your monthly rent that money is spent and gone with no chance of ever getting even a portion of it returned. The advantage of owning a home is you have the opportunity to build equity over time and get a portion or in some cases all of your money back.
There are no guarantees that the ultimate outcome of your home purchase will result in getting back a large portion of what you spent. However, if you look at the historical returns of real estate investment they measure up very well to almost any other type of investment you can make, and in many cases they are significantly better.
The key to this potential benefit of home ownership is the opportunity. If you own a home you at least have the opportunity to get a significant return on the money you spend and you can keep even more of your equity with a flat fee or commission free listing, while staying a renter means continuing to throw money away each and every month.
Low Interest Rates Offer Long-Term Cost Control
Interest rates are currently around 4% for a thirty-year fixed mortgage, which from a historical standpoint is extremely low. In the late 70s and early 80s, mortgage rates went as high as 20% during certain periods. Obtaining a long-term mortgage now while rates are still low is a huge advantage that could save you literally tens of thousands of dollars down the road.
Additionally, it allows you to lock in a lower monthly payment and you will know exactly what your monthly payment will be over the coming years. If you continue renting, then it is almost a certainty your monthly payments will increase as the value of real estate increases and inflation begins to affect the economy.
For most people, tax season is not their favorite time of year. However, as a first time home buyer it might become a much better time as you will qualify for several tax advantages as a homeowner. The mortgage interest that is included in your monthly payment is deductible on your taxes, as is the real estate taxes you pay and potentially the cost of private mortgage insurance if your loan required it.
In the early years of a mortgage, interest is the largest portion of your payment. Therefore, for the first several years a very large percentage of your monthly mortgage payments will be deductible. This is a big financial advantage and if you are accustomed to having a large tax bill as a renter, as a homeowner this can drastically change in a good way.
Improved Lifestyle and Comfort
Renting a home means you have to always check with your landlord when you want to make any type of change to the property or do anything that is not part of daily living. Being a homeowner is a significant improvement in lifestyle as it gives you complete control to live how you want and make any changes to the property you desire. You might want to finish the basement and make it into an entertainment room or build a sun room with a deck, it is all up to you and you do not have to ask for permission.
Solving the Rent vs. Buy Equation with Financial Incentive Programs
Improved Lifestyle and Comfort
As we mentioned above, working with the right real estate agent can have many benefits. Not all Realtors offer the benefits that include buyer cash back programs, down payment assistance and various special incentives. However, in addition to all the other benefits of owning a home, these additional realtor supported programs make changing from a renter to a first time home buyer an absolute must for most people.
Is 2016 A Good Year For Buyers
It has been reported that 2016 home prices are predicted to continue rising; as well as a possible increase in interest rates. So why wait, the sooner you take advantage of the current conditions before home prices esculate beyond your reach or a rise in interest rates causes you to have to settle for less than the home you want to get the same monthly payment you can qualify for now. There is no better time than the present to get started on owning your own home rather than to continue to rent where you do nothing more than pay off someone else’s mortgage.
Rent vs. Buy-The Answer for Most First-Time Home buyers is Easy
Buying your first home is an exciting time that you should enjoy as you look around at the various properties available and find a dream home that fits perfectly with what you envisioned. While renting might be right for some people if you factor in all the financial advantages and lifestyle improvements owning a home offers, it is an easy decision for most. Choose your great realtor that offers first-time home buyers programs make the rent vs. buy decision easy and will ensure you have a smooth and stress-free home buying experience.