Buying a home is everyone’s dream, but it is not easy to make the first step and climb the property ladder. It is a major decision that hugely depends on your financial situation and specific goals and ambitions. At the moment, 65.5% of the U.S. population lives in a home they own, and 34.5% rents, which speaks volumes about the benefits of homeownership and why Americans choose to live in a property of their own.
If you are still on the fence about buying or renting a place to live, you should consider all the advantages and the right moment to do it. Keep reading to find out why buying a home just might be the right thing for you.
Benefits of buying a House
If you are facing a dilemma over buying or renting a home, you should take into consideration all the pros and cons of both options and ask for some expert advice from a trusted real estate professional.
As rising inflation and rents are taking away your financial potential, it may be more sensible to invest in a home now. With home appreciation and increasing property prices, you will build your net worth, gain equity, and make a profit if you eventually decide to sell.
Here are some of the benefits.
Rent vs. Mortgage
If you want to get out of the cycle of increasing rent, you should do something quickly. Currently, rental prices are breaking records, with median rent across the 50 largest US metropolitan areas reaching close to $2000.
Rent prices have been going up for decades, and as the inflation trend continues, rent is expected to rise with it. Every time you pay higher rent, you don’t get more value for your money; you just pay more for the same property you have been using for years.
When you buy a home, you ensure stable, consistent monthly costs. The mortgage fixed rate will stay the same for the next 15 – 30 years for the duration of your loan. This way, you will protect yourself from the added expenses of the increasing rent.
Net worth and equity
One obvious reason for investing in a home is to start building your net worth and equity.
With real estate prices continuing to rise, your property will increase in value over time. This means you can make a profit if you sell or make an additional income by renting it.
Home appreciation also leads to higher equity, which is the difference between how much your home is worth and how much you owe on your mortgage. Your mortgage payments and the property’s value increase will gain equity and boost your net worth.
Additionally, the stable mortgage rate allows you to plan your savings or other investments, whereas renting a home will limit your ability to save more money.
Owning a home will give you a sense of security and stability in the long term. There is no need to move often and depend on the landlord’s plans for the property.
Also, homeownership gives you full control over the property. You can carry out repair works yourself, decorate it any way you like and further invest in its value by renovating and upgrading.
One major benefit is the mortgage interest deduction of up to $750,000. You can deduct the interest you pay on the mortgage from your taxes and use that money to further expand your net worth through investments or savings.
Blue Pacific Real Estate – With you Every Step of the Way!
Buying or selling real estate is a life-changing decision and no one knows it better than us. At Blue Pacific Real Estate, we’re with you every step of the way. We take special care to make the experience an exciting and memorable one and to make sure you get the most out of your investment.
For more information, give us a call at 206-582-7812 or drop by our office at anytime. We’d love to be a part of buying your new home!