Top 5 Reasons to Buy vs. Rent
July 19, 2022
For many people, owning a condo or townhome makes more sense financially and from a lifestyle perspective than renting an apartment. Below are the top reasons why buying might be a better choice.
1. Freedom to Do What You Want
Owning your new home means you can paint your living room any color, change your floors from carpet to wood, and put a new chandelier in the dining room without asking a landlord for permission. And often, making these home improvements will increase the value of your property.
2. Investment Potential Appreciation Benefits, Including Leverage of Cash Invested
Owning your home is an investment many people can understand better than buying stocks because they get the tangible daily lifestyle benefit of living in the home. The financial benefits can be significant. As a home appreciates, it accrues faster than a stock might because you get the appreciation on the entire home’s value, not just the gain your down payment cash invested.
3. Tax Benefits
Homeowners are allowed to deduct mortgage interest and property taxes when they file tax returns each year. These significant savings can often make the cost of owning the same as, or cheaper than, renting. Consult a tax advisor for more information on your individual tax benefits.
4. Predictable Payments
When renting, you may be subject to annual rent increases with each new lease signing. But if you get a fixed-rate mortgage on a home purchase, your mortgage payment can never change. Since the mortgage payment is the bulk of the owner’s housing payment, this creates a lot of budget stability. As for the other costs, both owners and renters have insurance (though insurance isn’t required for renters like it is for owners), and that fee can change slightly yearly. And while owners have property taxes that renters don’t, and property taxes can rise as the home appreciates, this fee is tax deductible.
5. Forced Savings
Paying your mortgage every month is like a forced savings account – you’re investing in your home, and its value increases over time – while a renter’s monthly payment goes directly to a landlord. When a homeowner is making a mortgage payment, a portion of that payment is paying the loan down each month, giving the owner more equity in their home.
Considering buying a new townhome or condo? Take the first step by contacting a Halen Homes representative who can connect you to one of our preferred lenders to get pre-qualified. Click here to see Halen Homes available townhomes and condos, or call 414-219-0740 for more information.