Buying A Home - Should You Rent Or Own A Home?
How often have you heard from other people that home ownership is more expensive than renting? Many renters believe this same myth, not knowing which alternative makes the best financial sense for their situation. How often have you heard other renters lamenting over the fact they don’t own a home, yet they aren’t willing to take the steps needed to pursue this option, afraid they’ll never qualify. Unfortunately, when the home market is really hot and prices start shooting upwards, many renters give up hope of pursuing the option of home ownership.
Before you give up hope, here are some revealing facts you need to be aware of: After factoring in individual freedom, tax deductions, future rent increases, and the ability to build equity, you’ll be surprised to learn home ownership is actually less expensive in the long term. When you take into consideration the thousands of dollars in potential equity that could be built, you can’t afford to not buy a home.
As a home owner, you can reduce a sizable portion of your taxes by deducting the majority of your mortgage payments from your taxable income. After taking into consideration your particular Federal, state, and local marginal income tax rate (MTR), your home ownership costs can decrease. This could slash your overall home loan costs by 20 to 40%.
For example, let’s assume your monthly mortgage payment (including principal, interest, property taxes, and insurance) is $2,000. After considering all tax deductions, your actual monthly payment will be around $1,400 a month. Your actual savings will vary depending on your particular situation. The point you should remember is don’t assume home ownership is more costly than renting. You should consult with a loan agent and tax adviser to see if home ownership would be in your best interest. You may be surprised to discover how advantageous owning real estate is.
Besides the financial benefits, ownership provides a feeling of individual freedom. No longer would you have a landlord dictating how you can decorate, what guests are allowed, and whether you can have a pet. For any renters, the freedom of ownership justifies any financial sacrifices necessary to buy a home. When you compare the advantages and disadvantages of owning property, don’t overlook the benefits of freedom and security home ownership can bring.
At first glance, the monthly cost of ownership may seem higher than renting. This may be especially true in areas of the country where the cost of real estate is hot. However, it’s important to look at the big picture. The financial benefits of ownership are a long-term process and you can save thousands of dollars over time.
As a home owner, you have the potential to create a large amount of wealth. History has proven that even when the real estate market fluctuates up and down, homeowners outperform renters when it comes to their financial gains.
Learn more about Tustin homes for sale. Use these local Tustin Realtors and see what they can do for you.
Related posts:
- Buying A Home - When You Have Financial Problems If you've previously suffered from financial problems, you may believe...
- Are You Tired Of Renting While You’re Single? If you're like many other single people, you may struggle...
- Buying A Home - Don’t Waste Any More Of Your Life Renting If you've been renting for what seems like an eternity,...
- Don’t Procrastinate On Buying A Home It's not uncommon to hear many real estate professionals advise...
- Buying A Home - Understanding Your Feelings During The Home Buying Process If you've been searching the local real estate market for...
Related posts brought to you by Yet Another Related Posts Plugin.