Given the nature of the complexes of Plaza Del Amo, with an abundance of individually owned homes and townhomes of which many are rentals….many potential home buyers wonder if it makes more sense to own to rent. The answer, of course, depends on each situaion, but from a long term perspective it always makes sense to be an owner….not a renter. While renting is often less expensive in the near term, it does nothing to build wealth and unlike a fixed rate mortgage, rents continue to go up. What may seem cheaper now, may be far more expensive later on. Everyone is different but in terms of long term planning it’s almost always better to own than rent.
Here are just a few of the reasons that owning a home is a great plan:
When you invest in a home, it offers the possibility for appreciation in value. The equity becomes yours when you’re still paying off your mortgage meaning that after the term of the loan you own it outright. This can be your retirement plan, a way to live inexpensively after you’ve retired, etc. You even get to live in it while your investment matures. While you may have saved some money renting, at the end of the rental you have nothing to show for it.
Controlling your Own Destiny
When you are a renter, you are at the mercy of your landlord. Even when you have a great relationship with your landlord things can change. If your landlord wants to raise the rent you’re stuck, if they want to move in your stuck, if they want to sell then you’re out. If you own your home and make your payments you’re in full control with no landlord surpises.
Since both mortgage interest and property taxes are tax deductible, homeownership can save you significant amounts of money every year. There are no tax advantages of renting.
Planned Housing Costs
You decide how much you spend on your home, including repairs and improvements. Unlike renters, homeowners with a fixed-rate loan can lock in their monthly housing costs.
Improvements to Your Taste
You can choose which improvements to make your own property, such as a deck, kitchen remodel, or new paint, instead of needing permission from your landlord.
If you have more questions about making the decision to buy a home, please feel free to call or email.