To rent or own? That is a question many Americans wrestle with in their search to make the best investment in their future.
Renting has its perks for many individuals. If someone is required to travel often or works for a company that demands job relocations, then renting a place makes sense. It is easier and more convenient to pack up an apartment when it’s necessary to move from an area.
On the other hand, others renting properties may find themselves stuck in a rental market’s cycle. They aren’t sure exactly how to save enough money to get themselves out of renting and into a place that they can call their own. That may call for cut backs in spending, budgeting tightly and setting a goal to save enough for a down payment.
The truth is that for the majority of people buying Coral Gables homes for sale or homes for sale in Coral Springs makes practical and financial sense.
Real estate analysts find that home ownership in the United States is on the rise, and for good reason. Mortgage rates have remained low and are expected to remain this way at least through the end of the year. Property values also have remained quite low over the last few years, but they are normalizing and back on the rise.
According to recent reports, nearly 64 percent of Americans are living in a home they are buying. And, it stands for good reason, since home ownership is truly within reach for a majority of Americans and it really can be just as affordable as renting.
Why Buy instead of Rent?
- Personal Investment
Renting just gives away the money you pay every month. You don’t receive any financial benefits.
Why not put that monthly money toward your personal investment? Mortgages on many homes, like Coral Gables homes for sale and homes for sale in Coral Springs, cost just as much if not less than what rentals in the same area demand per month. Plus, the mortgage payment on a home does provide financial rewards.
Every payment made increases the equity in the home, and each improvement you make increases the home’s value. There also are tax advantages to owning a home with real estate property taxes, mortgage interest and insurance listed as deductible expenses.
- Make Your Money Grow
Home equity is the market value of a homeowner’s unencumbered interest in their real estate property. In time, as you pay off the interest in your home loan and start paying off the principal, you will begin building the amount of equity in your home.
The equity is the difference between the home’s fair market value and the outstanding balance of all liens on the property. The more you pay toward the principal of your home, the faster your home equity will grow, and the better your investment in your home.
As the paid principal amount grows so does your investment, which means you will make money on Coral Gables homes for sale or homes for sale in Coral Springs if you ever decide to sell it. Additionally, any remodeling you do also will add additional resale value.
- Make it Your Own
One of the best parts of home ownership is that the property belongs to you. You can do what you want with the property. From painting or tearing down a wall to adding a deck or landscaping, it is up to you and the amount of money and time you have to spend.
Of course, you will need to pull permits before starting any renovation project so there could be some restrictions, and if you live in a community managed by a homeowner’s association, you may to get its permission first. But, overall, home ownership affords much more freedom than you typically get from rental property.
- Stable Monthly Payment
Home owners who sign up for a fixed-rate mortgage will pay the same amount on their monthly mortgage for the length of the loan. This is fantastic because you no longer have to deal with increases in monthly payments every time a new lease agreement is signed.
