Building equity: When you buy a house, you are building equity: Owning a home allows you to build equity by paying down the mortgage each month.
Tax deductions: Homeowners may be able to deduct their mortgage interest and property taxes on their income taxes.
This can provide some additional savings over the course of the year.
Stability: By owning your own home, you have the security of knowing that your monthly payment isn’t going to increase drastically due to an increase in rent.
Making home improvements: You have more freedom to make home improvements and renovations when you own your own home, which is something that you can’t do when you rent.
If I can rent for less than buying, why buy?
When interest rates are high, renting is a great option if you are looking for flexibility or need to use something for a short period of time.
In the long run, however, buying is often cheaper than renting.
Interest rates go up and down, and you have to get a higher interest rate now, there is a possibility that someday in the future you will be able to refinance and get a lower interest rate.
After all, renters don’t get to keep any of the money they’ve invested in the rental.
Additionally, buying allows you to take advantage of long-term investments, such as buying a home or other property.
Buying can also provide stability and security, as you don’t have to worry about rent increases or landlords suddenly deciding not to renew your lease.
If you finance a home and are making payment every month for 20 or 30 years and own it strange out, and you want to retire, you can sell and take your equity and use it as you want with it.
If renting for 20 or 30 years, and want to retire, there is no equity, and you will still be paying rent and your rent in 20 or 30 years could be higher than the income you may be getting.
Call or text (909) 226-3551 to set an appointment or to ask a real estate question
I know that there are those that don’t what to be lock into a house payment and don’t what to think of the future, then don’t think about it.
But don’t complain.
It sounds like a long time, but it does to go by pretty fast.
Steve Olmos
Selling real estate in Southern California since 1980
Real estate in our business and our clients keep us in business by using our services
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