Buying a home might seem expensive, especially in the short term. However, homeownership has multiple benefits that may not be apparent to everyone at first glance. Below are some of the reasons for buying a home still beats renting one.
You can't predict how much rent you will be paying a decade from now, even if you will still be living in the same house. However, you can predict how much your mortgage payments will be even decades from today. Get a fixed-rate mortgage, and you will have a clear idea of your payments for the term of the mortgage.
There is no alternative to homeownership if you want to live in the same place for the rest of your life. If you buy your home, you can even rebuild it if a disaster strikes — no one will evict you. With a rental house, however, the owner can evict you by giving you notice and following the eviction laws of your state. Thus, if you find a good waterfront home and you want to live in it forever, buy the home.
A home that you own can be your rainy-day fund. You can sell the home or, better yet, borrow money against your home equity. Such funding can come in handy if you need to finance an expensive medical treatment or make a large investment. You won't have such a fall-back plan if you have been living in a rental property for years.
Real estate laws determine the circumstances under which a landlord can enter a tenant's property. For example, your landlord can enter your home to make repairs, to handle an emergency, or even to show the property to prospective investors or buyers. Such situations might be limited, but they clearly show the lack of privacy in rentals. You don't have to worry about such things if you own your home.
Lastly, you may also enjoy some tax benefits if you own your home. Here are some of the tax benefits of homeownership:
- Mortgage interest deductions
- Deductions on property taxes
- Tax exemptions on home sales
Again, living in a rental property means you will miss all of these tax benefits.
You will reap the full benefits of homeownership if you follow due process and get everything right from the start. For example, you must inspect the house to confirm its structural integrity before purchase. An experienced real estate agent can help you with the process. Look for a real estate agent like Danielle Edwards Re/Max to help you find a home.