Renting a home is a good option for some, but buying a home just might be the best thing for you. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks. For some this is the reason they choose to rent; but for others, the following reasons are compelling and cause them to ponder getting into the homeownership game.
Pride of Ownership
For most, this is a biggie. To be able to say ‘I own the house I live in’ produces a tremendous amount of pride for individuals who are buying their homes. This ‘pride’ is most often reflected in the way the home is cared for both in- and outside. When a person lives in a neighbor with other homeowners, the entire block usually reflects that same level of pride. Think about it, if you spend several hundred thousand dollars on a thing, you are absolutely motivated to take the best care of it.
Equity Build Up
Another biggie… Did you know that when you rent a home, you help someone else build equity? Equity is the difference between what you owe the bank and what you can sell the property for. Any changes that you make with your landlord's approval, puts money back in his or her pocket via an increase in value. Taking care of the property builds equity in that property as well as the simple passage of time. When you buy a home of your own, you have the chance to build equity of your own, which you can use later for leverage.
Save On Your Taxes
When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions. There are also opportunities to deduct for certain types of energy efficient renovations and appliances.
Put Your Personal Touch On Things
As long as you continue renting, you live in a home that belongs to someone else. Your landlord has the final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first. Owning a home allows you the opportunity to put your personal touch on things. You can paint the walls purple – if you like, rip out the carpet, or make any other change you want both inside and outside. Bottom line, you’re your own landlord and are only limited to what you can afford.
Renting may be the only option some people think they will ever be able to afford, but if you’re interested in learning if you are destined to own, seek professional advice from a qualified real estate consultant.
Glenda Brass has been in the real estate industry for over 16 years. She is CEO of Brass & Brass Enterprises, LLC, located at 2639 W. Manchester Blvd. For more information on buying or selling real estate call Glenda at 310-345-9707.