With rents on the rise this could be the perfect time for you to buy; but here’s what you need to consider first:
ADVANTAGES OF BUYING…
- By maintaining regular mortgage payments, your credit score will increase over time.
- If you itemize deductions, you could lower your federal tax liability by taking the mortgage interest deduction.
- When you buy a house, you will know that the mortgage rate for the 5 to 30 years is going to be the same every month. Rent may continue to increase each year.
- With each payment, you will build equity and increase the amount of total home ownership.
- There may be down payment programs available in your area that can help you purchase your first home.
YOU SHOULD CONSIDER BUYING IF…
- You want to build wealth. Investing into real estate is the fastest way to add zeros to the end of your net worth.
- You want to settle down, build community and know you will be in the same city or town for at least 2 years.
- You want to invest your income into property that will hopefully provide you with a payoff should you decide to sell in the future.
YOU SHOULD KEEP RENTING IF…
- You need flexibility and don’t want to commit to staying in the same location for the foreseeable future.
- You have limited income or are unsure about your current job. Renting allows you the flexibility to downsize
If you are thinking about buying a home, reach out to your local Realtor to get started.