Should you rent or buy a home? It all depends on your financial and life circumstances. Today, JS Realty is going to discuss the factors involved in whether you should own a slice of America – or if it makes more sense to rent. The benefits of owning your own home are plentiful, and there can be great financial perks, but the benefits don’t stop there. Everyone’s situation is different and you need to have all the facts so you can make an informed decision that’s right for you and your family.
Owning a home can provide a sense of Security and stability to your life. Children can grow up with their same friends, continuing on through school with people they are comfortable with. It helps your family grow roots, so to speak, and feel as though they are part of a community, when you have the familiarity of living in the same home, neighborhood, and town. Children’s (and adult’s!) hobbies and sports also benefit from having the same core group of neighbors, teachers, and coaches continuously supporting them when you own your home in your community.
Financially, owning your home can be very rewarding. First, being able to deduct the interest on your home loan on your taxes is a huge help. This substantially reduces your taxes owed. As a homeowner with a 30 year mortgage, most of your payment is interest on the loan. Homes generally rise in value; this is how you build equity in your home. As you slowly pay down the loan your home’s value is rising. Making improvements to your home also adds value. Another great benefit is that you get to choose the improvements instead of living with someone else’s choices. Rents in our area are continually on the rise. Provided you have a fixed rate loan, owning your home means your mortgage payment remains the same throughout the length of the loan. And with rates as low as they are today, most people are choosing a fixed rate on a 30 year loan.
The following chart depicts the cost comparison of renting vs. buying. As you can see, after around 6 years the homeowner’s payment is less than the renters. This time frame is reduced to 3 years, if you factor in your tax savings as well.
Moving is never a fun experience, and owning your own home gives you the control to decide if and when you move. Most rental properties are not available to rent for more than 2 years, so this means every few years you have to start the whole process of finding a home to rent and moving all over again. Stability and being in charge of your own destiny is a very powerful and liberating feeling.
Now, there are instances when buying might not be right for you. If you are not going to be in the area for more than 2 years, you probably would be better off renting. If you are saving to buy a home then maybe sacrificing and living in a small home you rent would help you save the money you need for your down payment.
Homeownership is both rewarding and fulfilling. It helps build strong communities and families. Contact the JS Realty Team at Samson Properties today for a no-obligation appointment, and see if home ownership is right for you!
The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.