The decision to buy a house is a significant milestone in life. There are lots of reasons why buying is better than renting, including:
- Tax advantages
- Ability to grow equity
- A place to call yours
- A sense of pride/accomplishment
Buying and selling a house is a big step, so you want to work with a real estate professional you can trust. The Lafayette Team with EXP Realty is located in Lexington, South Carolina. We specialize in first-time home buyers and sellers. We can help you with every step of the process.
In this article, we’ll explain the top reasons you should buy a house now instead of continuing to rent.
Top 10 Reasons
There are lots of reasons you may want to buy a house instead of rent. Below are the top 10 reasons:
Rent is increasing
Across the United States, the cost of rent is rapidly increasing- a trend that is expected to continue. Some research indicates that rent prices are increasing faster than income in many markets. This means that, in many markets, the cost of a mortgage is about the same or even less than paying rent.
Owning is a better investment
When you rent, you are paying your landlord every month and you have nothing to show for it. Owning a home is an investment because it’s a type of forced savings. When you buy a home with a mortgage, you will have an asset that you can sell in the end. However, if you pay rent for that same period of time, you won’t have any way to recoup your rent payments.
Interest rates are low
The current interest rates support the argument that it’s better to buy a house rather than continue to rent. While a few percentage points may not seem like a major difference, it can have a significant impact on your monthly payments. Locking in your rate now can save you hundreds every month for the next few decades. Plus, a mortgage payment is usually cheaper than rent, and you get a yearly tax deduction.
Down payments as low as $0
When you decide to buy a house, there are loan and assistance programs that can get you into a home for $0 down. However, you must meet certain criteria based on the program. However, keep in mind that this may not include closing costs.
You can use gift money for down payment
While you appreciate monetary gifts from loved ones, you may wish that they could do more to help you. The good news is, they can- depending on your loan program. Gift money can be used for your down payment. The amount varies based on the program and you may have to come up with some on your own- but not as much.
Build equity as property values rise
In recent years, home values have risen- a trend that is expected to continue. This means that owning a home is a profitable long-term investment. Home prices have risen around 13% in the last year- and increasing property values mean that anything you spend will provide significant returns. Plus, every payment reduces the outstanding loan amount, which gives you more equity.
Higher loan amounts are available
While experts agree that it is better to buy a house instead of rent, even with low rates it can be a struggle to find a house you can afford. The good news is that many loan programs have increased the amount you can borrow, which means you can easily finance your home.
Monthly payments are predictable
When you rent, there’s a risk of your rent increasing which can have a significant impact on your budget. However, with a fixed-rate mortgage, you have predictable monthly payments. You don’t have to worry about your payment increasing or a landlord evicting you because they want to sell the property.
Make money by renting out a spare room
As a homeowner, you have the opportunity to rent out a spare room to bring in additional income. You can bring in a long-term tenant or consider listing on sites like Airbnb, offering a vacation rental. You won’t have to worry about asking the landlord for permission or trying to convince a roommate to agree- you are the one in charge.
Tax deductions
In addition to the long-term benefits, there are short-term benefits when you decide to buy a house. Some of these include mortgage interest payment deductions and other annual tax write-offs. These deductions can save you a lot of money and are not available for those who rent.
Let The Lafayette Team Help You Achieve the Dream of Homeownership
In the past, renting was the cheaper option- but due to the many benefits of home ownership, it may be time to buy a house. These are just a few of the benefits that are associated with buying.
If you are looking to buy a house in or near Lexington, South Carolina, work with the Lafayette Team with EXP Realty. We specialize in working with first-time homebuyers. In addition, if you are interested in selling your first home to level up, we can help you with that too.