Thanks to historically low mortgage interest rates that seem to continue to fall, buying a house is now more affordable for many people. Working with an experienced Realtor® who understands the market and the home-buying process can make it even more affordable to buy. That said, many potential homeowners in Gig Harbor are still choosing to rent rather than jump at this chance to buy.
In today’s post, we will discuss the benefits of buying a home instead of renting to hopefully convince you that buying is a better option overall for most people. When you are ready to buy a home in Gig Harbor, remember to contact Team Aro. Our Realtors® have vast experience working in the area, and they can help you buy an elegant home at an affordable price. Read on to discover some benefits that come with ownership.
Build Financial Stability With Equity
Perhaps the biggest benefit from becoming a homeowner is getting the chance to establish home equity. When you rent a living space from a landlord, your rental payments will typically go directly to the landlord. The landlord uses those payments to cover their expenses and then the rest of the payment is pure profit for the landlord. You rarely see the money from your rent come back to you in any substantial way.
Unlike renting, buying a home is an investment. Each time you make a payment on your mortgage, part of the payment goes toward paying off the principal portion of your home loan. As a result, a mortgage allows you to slowly buy your home, building equity (or owned value) over time. A large portion of the equity you build over time can later be turned into cash through refinancing and used to pay for other things you wish to buy. With every mortgage payment, you add to your financial stability by building up equity, which can come back to you later.
Moreover, you can make a substantial amount of money if the value of your home rises and you choose to sell. Many times, home values rise over the life of a loan (especially in a thriving market such as Gig Harbor’s) and homeowners can make money from selling. This is an investment that you miss out on when you choose to rent instead of buy.
Another major perk of buying a home is the steady payments that come with a fixed-rate mortgage. Thanks to amortization, fixed-rate mortgages feature consistent payments each month for the entire term. That means that unless you refinance, your monthly payment will remain unchanged for the next 10, 15, or 30 years (depending on the term of the mortgage). Anyone who has had their rent go up after the end of a lease understands how beneficial a steady payment could be. This is just another way being a homeowner improves financial stability.
Sense of Ownership (And No Landlords)
If you have ever rented a home or an apartment, you have probably been frustrated by the lack of authority you had over your living space. Want to paint a wall in the office? Too bad, your landlord won’t let you. Do you want to use a repair company you trust? That is unfortunate, because your landlord has a deal with another company.
Every renter has experienced some sort of frustration like this, but thankfully, home ownership is a way to gain a sense of authority over your living space. When you own a home, you don’t have to worry about a landlord kicking you out or making a change to the space that you do not like. You become the decision maker, and with that comes a sense of pride. This sense of ownership makes the prospect of buying attractive to many people and is thus one of the major perks associated with buying.
It Can Be More Affordable
It may come as a surprise to you, but buying a home can be more affordable renting. This is especially true over the long-run, since rental rates often rise over time, but mortgages offer the chance to have steady payments. Furthermore, the low interest rates as well as the different types of mortgages available can make buying competitive with renting. Of course, this depends on the home you wish to buy, your financial history, and other factors, but you should know that it is possible for buying a home to be cheaper than renting.
Homeowners also have more chances to make their expenses less burdensome than renters have. When you own a home, you can choose to install energy efficient appliances and devices to cut down on utility costs, while that is left to your landlord’s discretion when you rent.
Ownership Comes With Tax Benefits
Finally, homeowners have the chance to save even more through tax benefits. In many cases, mortgage interest rate payments and property taxes are tax deductible, meaning homeowners can save even more money. Renting doesn’t typically offer as many chances at tax deductions, and as a result, renters can end up paying more than comparable homeowners.
Buy a Home in Gig Harbor
Are you ready to experience the benefits of owning a home firsthand? If so, then contact the Realtors® at Team Aro! We will help you find your dream home in Gig Harbor.