Today’s homebuying market is through the roof which means there’s an amazing opportunity for first-time homebuyers. The timeline for when to buy a home is different for everyone. However, if you are like so many others these days, you may be asking yourself, “Is now the time?” The answer depends on your current situation, financial status, and your goals. Here are five things to consider before you become a homeowner.
- Rent Will Continue to Increase
This is one of the top reasons renters decide to buy a home. In most cases, the cost of rent will change, and according to the U.S. Census Bureau, not in your favor. Whereas when you buy a home, you are likely to lock your monthly payment for the life of your loan, creating consistency and predictability in your payments.
- Freedom to Customize Your Space
This is a huge decision maker for many people who would like to customize and/or upgrade their current living space. In most cases, landlords prevent you from altering their property. However, if you own the property, you get to call the shots and truly make it your own.
- More Privacy
When renting, your landlord has access to your personal space in case of an emergency or to fix something. If you own your home, you’re the one that decides who comes inside your home. During the pandemic, this may be a growing priority for you.
- Homeowners Build Equity
When you rent, your landlord earns the equity the property gains. However, when you own the property, the benefits of your investment go directly toward your net worth. This is savings you can use in the future for things like buying a bigger home or starting a business!
- There May Be Tax Advantages
When you own your home, you may be able to deduct your property taxes and mortgage interest. But when you rent, the tax benefits don’t go to you, they go to whomever owns the property. Always consult a tax preparer when it comes to taxes.
Bottom Line
Everyone’s timeline is different. Only you know best if now is the time to buy. If you’d like to learn more about the pros and cons of each, connect with our team today to discuss what is best for you. This will allow you to make the best and informed decision with a trusted expert on your side!
Please be aware: Always consult a tax preparer when it comes taxes – homeowners should not use this blog for tax advice solely.
Topics: Home Equity, rent vs. buy, Homeownership, benefits of homeownership
