At any point in life, your living situation may change due to a move in your career, family obligations, or just the need for a new adventure. Whether short or long term there is a decision to be made: buying or renting.
- Better tax deduction eligibilities are available for homeowners. You may be able to claim your rent on your taxes, but owning a house offers more tax incentives.
- Mortgage payments stay consistent. A landlord could decide at the end of a yearlong lease that your rent is going to increase by 20%, 40% or even 50%! When you have a mortgage loan with a bank, your payments are locked down until you decide to refinance.
- The landlord, friend or foe. If you like to do the work around your house and yard yourself, you probably don’t want to deal with your landlord restricting your intentions. On the other hand, if you are not so handy maybe you want to have a landlord or a super who can help out when your toilet is clogged, to mow your lawn or to fix a cracked window. Just remember that landlords don’t do that work for free. It is built into the cost of your rent.
- You have the ability to tailor your living space and make structural changes that you wouldn’t be able to do if you rent. Maybe you’d like to remodel a bathroom, put carpeting into your living room or even paint! You also can make decision about eco-friendly heating and cooling systems or cost-efficient appliances. A landlord may not let you do those things, but if you own your own home, you can make those decisions for yourself.
- Owning your own home will put your money to work and create equity for you.
When your neighbors drive down your street and notice your house, you can take pride in your home ownership and feel connected to your community. Contact a lender at your bank or credit union to start the conversation today!