While most people know that renting doesn’t have a return on investment, there are other benefits to buying a home if you can. Renting can be a good option for people that are only going to stay in a community for a short time, but if you want to stick around, buying a home is a great idea. Here are some reasons to buy a home.
1) ROI and equity. It can’t be said enough that you can get a substantial return on investment when you buy a home. You can gain equity and get more money from selling than you spent buying the home.
2) Tax benefits. Even with tax reform being in the news, mortgage interest is tax deductible. The government encourages homeownership because it’s good for communities. Why not take advantage? In Texas, there’s a homestead exemption on property taxes that gives you a discount on property taxes for your home. If you rent a home, the owner will certainly pass the higher cost of property taxes on to you.
3) Stable housing costs. With a fixed-rate mortgage, the payment for your home can say the same for 30 years. When you rent, you never know what will happen when your lease is up for renewal. Prices almost never go down. As a homeowner, you have a consistent mortgage payment and even more predictable utility payments.
4) Control your living space. Do you like to paint or do you want to install upgrades? Those are things you can do as a homeowner. As a renter, you could end up paying big bucks if you alter the home you’re renting.
5) No more moving. As a renter, you don’t know when you might have to move. If the property comes under new ownership they might have different ideas for the property like condos or raised rent.
6) Social benefits. If you aren’t moving around a lot you can put roots down in the community. Your kids can have lifelong friends and you can form lasting relationships as well. Keeping your kids in the same schools allows for them to follow a consistent educational path as well.
7) Move on up. If you build equity in one home you can sell it and buy a newer and better home. You could also use the equity to buy a second home or pay off debts. Remember to always view your home as a long-term investment and take advantage of what you can get out of it.
While renting is a good option in some situations, owning a home has substantial benefits. It’s the largest investment you’ll make in your life so make sure you talk to your College Station realtor so she can help you make the right choice. A realtor can help you find the right home for your family and then help you down the line if you want to sell or buy another home. While putting down roots in your new community, include your realtor as one of your first friends in town.
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