What Are The Hard Facts About Renting Versus Buying a Home?
What are your thoughts about the cost of home ownership? Many renters suffer from the same belief, unsure which option is best for their particular circumstances. Many renters dream of owning a home, but they\’re reluctant to pursue this option fearing they\’ll never be able to afford it. Unfortunately, a hot real estate market with escalating property prices reinforces this pessimistic attitude.
Before you give up hope, here are some revealing facts you need to be aware of: After factoring in individual freedom, tax deductions, future rent increases, and the ability to build equity, you\’ll be surprised to learn home ownership is actually less expensive in the long term. When you take into consideration the thousands of dollars in potential equity that could be built, you can\’t afford to not buy a home.
After you buy a house, the government allows you to reduce your taxable income by subtracting a large portion of your mortgage payment. In reality, your overall homeownership costs can be reduced-contingent on your individual Federal, state, and local marginal income tax rate (MTR). The amount you save could range between 20 to 40% of your monthly mortgage statement.
For example, let\’s assume your monthly mortgage payment (including principal, interest, property taxes, and insurance) is $2,000. After considering all tax deductions, your actual monthly payment will be around $1,400 a month. Your actual savings will vary depending on your particular situation. The point you should remember is don\’t assume home ownership is more costly than renting. You should consult with a loan agent and tax adviser to see if home ownership would be in your best interest. You may be surprised to discover how advantageous owning real estate is.
As a homeowner, you\’ll benefit financially and enjoy the benefits of personal freedom. Gone are the days of living with an overbearing landlord imposing their strict rules on your visitors and pets. If you ask many first time home owners, the sacrifices required to purchase your own home are well worth it. When you evaluate the pros and cons of being a homeowner, don\’t forget to consider the additional advantages of personal freedom and stability.
When you first compare the money you spent each month as a homeowner, it may seem a lot more than renting. If you live in a community where real estate costs are high, this may be the norm. But don\’t let this deter you from buying a property. The financial rewards accrue over time and you could end up saving thousands of dollars in the long run.
As a home owner, you have the potential to create a large amount of wealth. History has proven that even when the real estate market fluctuates up and down, homeowners outperform renters when it comes to their financial gains.
Are you looking at Oakland homes for sale? Check out these Oakland Realtors to help you find one!
Related posts:
- Can Your Monthly Budget Afford a Home? If you've been renting for a long time, you may...
- Terrible Credit Keeping You From Home Ownership? If you've gone through bad financial times in the past,...
- Don\’t Blow Your Whole Savings Fixing Up An Investment Home If you're trying to makeover an investment home so you...
- Don\’t Miss Out On The Opportunity Of Seller Financing If you were to take the time to research the...
- Is There a Good Time To Remove An Inspection Contingency? Never enter into a contract with a seller without including...
Related posts brought to you by Yet Another Related Posts Plugin.