Tired of throwing your money away on rent? Buying a home is an investment that can yield significant returns.
Buying a house is a big step that’s not just about where you live, but how you live. Not only is a home one of the most important investments you can make but home ownership delivers a wide range of benefits, both financial and personal.
If you’re fed up with writing rental checks, buying a home offers many advantages. While rent is an ongoing expense that yields no returns, as a homeowner you’ll build financial equity. With every mortgage payment you make, your equity increases. A home is an investment that can increase in value over time and that means greater equity for you and a higher return on your investment when it’s time to sell.
Over the past year, U.S. median home values have increased 5.1 percent. Over the past five years, home values have gone up 23 percent (from $153,000 to $188,000.) In Arizona, average home values increased 7.8 percent over the past year, and 54 percent over the past five years (from $135,000 to $208,000).*
Homeownership also provides tax benefits that aren’t available to renters. The interest paid on your mortgage may be tax deductible. Your property taxes provide an additional tax deduction.** Rent, on the other hand, isn’t tax deductible.
Taking control over your housing costs is another attractive feature of owning your own home. If you’re a renter, your landlord can raise your rent as soon as your lease expires or even evict you with very little notice. As a homeowner, your financial stability isn’t subject to the whims of a landlord. The principal and interest payments of a fixed rate mortgage never increase ─ you can count on your loan payments to stay the same every month.
One of the greatest joys of being a homeowner is having the freedom to make a house your own. If you want to make home improvements, decorate, add security features or own pets, the choice is yours. Having the ability to do whatever you want with your home interior without a landlord’s approval is a true privilege of homeownership.
The benefits of owning a home go on and on. For example, a home offers greater privacy than an apartment with shared walls, ceilings and floors. Homeowners are more likely than renters to put down roots in their communities and build friendships with their neighbors. And let’s not forget the tremendous satisfaction that comes with the pride of ownership.
If you feel like it’s time to stop wasting your money on rent and start building equity in your own home, an Alliance Home Loans expert will work with you to make it happen.
Ready to take the first step toward home ownership? Contact us today.
**Contact your tax professional to learn more