Renting vs. Owning

                                                     

                     

                                       http://www.joshuaandshellyre.com/home

Buying a home is the largest single investment most people ever make, and this also makes it one of the most important decisions they will face. We have listed ten reasons why we think it is important for everyone to own a home.

Freedom and Privacy

The property is yours to do with as you choose. You are not at the mercy and discretion of a landlord or owner.

Inflation Protection

Your rent will keep going up, as do house prices. Once you purchase a home, you, not the landlord, reap the benefits of it's appreciation in value. Historically, home prices will maintain value even in recessionary times, and increase in normal or good economies.

Tax Benefits

Many interest deductions have been eliminated from the IRS regulations, yet mortgage interest on your home is a very healthy deduction, especially in the first years when the bulk of your payment is interest. Other deductions are also available to homeowners for energy credits or other improvements. Property taxes are also deductibles.

Improvements

A renter gains nothing when he improves the house he lives in. A homeowner reaps a return on those improvements when the house is sold.

Retirement Security

Unlike rent, which goes on forever, a mortgage is paid off at some point in time. This can provide a "rent-free" retirement for you.

Environment and Lifestyle

It is usually apparent whether a neighborhood is made up of owners or renters. Homeowners have a financial stake in their neighborhood, and consequently, take good care of their property. This in turn helps your property to continue to increase in value.

"Trading Up"

In today's real estate market, not everyone can afford their dream home on their first purchase. By getting your foot in the door by purchasing a home that you can afford initially, you will be in a great position to upgrade in the near future. In addition, by making any improvements and upgrades to the property, and with normal appreciation, many people are able to sell their first house and "trade up" to that ideal home of their dreams.

Investment or Income Property

A second home is an excellent tax deduction and investment. Interest on a second home is also tax deductible, and you will be able to gain profits and tax benefits from renters.

"Effective" Interest Rate

The interest you pay will be much less than you think. Because the interest is tax-deductible, you may be able to change your withholding or receive a larger tax refund.