Buying a home is often the most major financial decision in a person’s life. Not only does it affect your lifestyle, but it will affect you and your family’s financial health. Whether you are buying your first home or looking to make a move and sell your existing home, the market is slightly crazier than what you might have seen in the past. Yes, most of the country, including Florida, is in an ultra-competitive seller’s market. So you may be asking yourself whether it is a good time to buy or if you should stick with renting for now. While the market may be a bit more challenging at the moment, buying is still better than renting if you plan to move to DeLand, and here are several reasons why!
Buying a Home is a Sound Financial Investment
Home prices continue to increase over time, so buying a home is considered a good long-term investment for most people. If you maintain your home and make repairs and updates as needed, it will maintain most of its value. Even if your home’s value depreciates because of its age, the land it sits on can continue to grow value.
A significant difference between buying a home versus renting a home is that your monthly mortgage payment goes toward building equity in your home. As you continue to pay down your mortgage, your equity will continue to increase. Eventually, more of your payment will go toward pay the principal on your loan as your interest payments will continue to decrease over time. When you pay rent, that money does not work toward your financial future as home equity does.
Enjoy the Possible Tax Benefits Home Ownership Offers
While tax laws are always changing, homeowners can still deduct their mortgage interest if they itemize it when filing their federal income taxes. Unfortunately, renters cannot file for a deduction to recoup the rent they pay. An added tax break is that homeowners can also claim up to $10,000 in property taxes paid on their income taxes.
No More Answering to a Landlord
When you rent a home, you have to follow the rules set by your landlord or property management company. You may not be able to have pets, and if you are, you might be limited to a certain size, breed, or type of pet. When you own your home, the only thing that might be holding you back from having a certain pet are limits set by your municipality or homeowner’s insurance provider.
Not having a landlord or property management company to answer to means that you can decorate your home as you want. For example, you can change different features in your home, like flooring or paint, or choose to entirely remodel your kitchen or bathroom to your liking.
More Stability for Your Family
When you rent a home, you are at the mercy of the landlord. Your landlord could decide to sell the house, and then you may need to uproot and find another place to live if the new owner does not want to rent it out. This could mean a longer commute to work or, even worse, having to put your children into a new school when they are already settled into their existing school, activities, and bonds with friends.
Buying a home allows you to provide more stability for your family. People who buy a home tend to stay longer in their homes. As a result, you and your family can feel a sense of home stability and put down roots as a part of your community.
No Worries About Rent Increases
Renting a home means that you are always at risk of your rent going up each time you sign a new lease. It also puts you at a higher risk of being forced out of your home if you cannot afford a rent increase year after year. Buying a home typically requires you to make a down payment and closing costs upfront. However, once that is done, you can plan for monthly payments to budget for each month.
Having a fixed-rate mortgage gives you a more predictable insight into what your housing costs will be because, with most mortgages, you will pay a fixed amount for your principal and interest until you pay off your mortgage. After that, the only change to your monthly payments will be any increases in your property taxes or homeowner’s insurance. You will often have a few months to prepare for these increases, which typically are nominal and occur fewer times than rent increases.
More Privacy for You and Your Family
It can be hard to feel like your home is really your own when you rent because it isn’t really yours. While most leases require a landlord to give you 24 to 48 hours notice before requesting entrance to your home, not all landlords are great about this policy. In addition, there may always be a nagging thought in your mind that someone else has the keys to your home and can go in unnoticed when you are not home. When you own your own home, you control who has keys or the combination to your door, thus maintaining your and your family’s privacy in your home.
If you are ready to buy a home, do not put it off any longer. Even though the market is hot right now, there are still plenty of opportunities in the DeLand area to own your own home. Contact our team at Palmetto Realty for more information today!