Pros of Owning
Build Wealth: Renting is not as financially forward-thinking as owning. With your home payment, you are getting something in return. As you pay down your mortgage and your home appreciates in value, your net worth increases, building a legacy you can pass on. Stable Costs: Whereas rents can increase every year, locking in your mortgage to a fixed payment keeps your housing cost stable—and probably lower—over time. Make the Home Your Own: As a homeowner, you are free to personalize your home to your heart’s content! Source of Cash: As your home appreciates, you can refinance your mortgage to pull out cash for improvements, renovations, vacations, college tuition, or passion purchases. Tax Advantages: Your mortgage interest and property taxes can be deducted in April to lower your tax burden. If you sell the house for a profit, the profit may be taxed at a lower rate or even completely exempt from taxation. Builds Credit: Paying your mortgage on time builds your credit score, enabling you to qualify for more loans at lower rates. Possible Investment: If you move, you could always rent out the home to a tenant instead of selling, creating cash flow.
Things to Keep in Mind
Responsible for Repairs and Improvements: While your house payment will be lower over time, make sure to budget for repairs and improvements and form good relationships with home service professionals and contractors. Less Flexible: It’s easy to leave an apartment. Selling a home is a much longer process. If you plan to move around a lot, it’s harder to build wealth with a home.
Buyer Guide · 4
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