To buy or to rent; The question on the minds of so many Americans today. If you’re on the fence between buying and renting, you know there are several factors to consider. Here are eight reasons why buying might be better for your situation.
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Buy a home, increase your net worth
Homeownership has been the safest and most popular route to increasing net worth for the average person in the US. The longer you own and make your mortgage payments, the higher your equity in the home. So unless you’re planning to move neighborhoods or even states in the next five years, you’re better off owning.
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Appreciation
To own a home means to own a tangible asset that, as a general rule, will appreciate over time. In Florida, homeowners have seen median home values skyrocket nearly 24% in the past year and an impressive 69% over the past five!
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Tax deductions
Even if you don’t stay in your home forever, there are still short-term benefits of buying, such as tax write-offs. When you go to file your taxes, you can deduct mortgage interest, discount points, property taxes, some home improvements, home office expenses, and private mortgage insurance (PMI)
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Down payment isn’t always necessary
Fortunately for buyers, there are several options to reduce your down payment or eliminate it entirely. Special programs such as FHA loans only require a 3.5% down payment, while VA loans don’t require one at all. Check out Down payment assistance (DPA) programs offered at the federal, state, and county levels that could provide you with partial and full grants.
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Protection against inflation
When you buy your house, you lock yourself in with a concrete mortgage payment. You know what to expect each month, and there’s no landlord to increase your rent, or worse, tell you to find other housing. So while the renters are subject to inflation and rent increases, your mortgage payment stays the same.
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Make a profit
If you’re looking to make some extra income, consider renting out one of your rooms to long-term tenants or through Airbnb. Doing so can provide additional funds for your monthly mortgage payment or even cover it entirely!
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Low-interest rates
Even though interest rates creep back up towards pre-pandemic levels, they’re still relatively low compared to the past decades. That means you can lock in a 15 or 30-year mortgage and save on your monthly payment in the years to come. Remember, the interest rate on renting is 100%.
Maven Homes
Homeownership is the dream of so many, and we want to make it possible for you. At Maven Homes LLC, we are dedicated to providing start to finish service. From helping you choose the right model design, through the building process, and up to the point you move in – we’re here for you. You can count on top-tier customer service to make your homeownership dreams a reality.