If you're still renting, it's time to buy your own single-family home. You may think that you're better off renting, but you're actually missing out on quite a few benefits that you might not have considered. Here are just four of the benefits you'll enjoy when you become a home owner.
No More Rent Increases
When you rent, you never know when the landlord is going to demand a rent increase. Even if you've signed a lease, those monthly payments could go up at the end of each lease term. Unfortunately, there's no way around those increases when you rent. However, when you purchase your own home, you'll know exactly how much your payments will be for the duration of your mortgage. If you choose a fixed-rate mortgage, your monthly payments will stay the same until you pay off the loan.
Pay Off Your Own Mortgage
If you're renting a home or apartment, you're paying someone else's mortgage each month. Not only that but you're monthly payments are being used to help someone else maintain a good credit score. That's because mortgage payments show on credit reports each month. Unfortunately, rent payments don't, which means your timely payments aren't helping your own credit. When you purchase a home, your monthly payments go towards paying off your own mortgage. They also show on your own credit report.
Utilize the Tax Breaks
If you're like most people, you're always looking for tax breaks. Unfortunately, renting a home or apartment don't provide you with many of those breaks. That's where owning a home can help. There are a wide variety of tax breaks you can benefit from when you own your own home. These tax breaks can help reduce your tax liability, which means you'll be paying less to the IRS each year.
Enjoy the Retirement Benefits
You're never too young to start planning your retirement strategy. In fact, you should start planning your retirement as soon as you enter the workforce. You may have retirement accounts that you and your employer put funds into each month. However, if you don't own a home, you're missing an opportunity to expand on your retirement benefits. As soon as you purchase your home, it will begin to build equity – equity that can be used for your retirement later.
If you currently rent a house or apartment, it's time to talk to a real estate agent about buying your own home.Share