GREATER IOWA CREDIT UNION: How to Make a Decision - Buying vs. Renting
Greater Iowa Credit Union issued the following announcement on April 30.
So, you’re deciding between renting a house or buying one. This is a big decision with a lot of consideration needed for the many factors that will impact your decision. You’ll want to consider what your long-term plans are, what shape your finances are in, and even the real estate market where you live.
Benefits to Buying a Home
The ability to renovate your home exactly as you want to. When you own your home rather than renting it, you have full control over what you want it to look like. You can pick paint colors, change flooring and upgrade backsplashes as you see fit!
You can build equity in your home.Home equity is typically a homeowner’s most valuable asset. It increases as time goes on and the mortgage loan gets paid down or the property value increases, or both! If you decide to upgrade different parts of your home it can help to increase the value of your home and allow you sell it for more than you bought it for!
Owning a home is an investment.When you purchase a car the value of that car instantly drops. Unlike a car, a home is something that appreciates in value over time. While markets fluctuate all the time and local markets have unique factors, the national median home price goes up each year.
Tax benefits. The federal government offers tax incentives for homeowners to encourage people to own homes. A major tax benefit is the option to deduct interest from your mortgage payments on your tax return. This is especially beneficial when you first start making payments on your mortgage and a lot your payment is applied to the interest.
Stable monthly payments. If you are renting your landlord can often increase your rent payments each year. If you own your home and have fixed-rate mortgage, you have the stability of knowing your monthly payments will stay the same.
While there are benefits to both buying a home and renting, the final choice all depends upon what suits your current situation the best. If you love where you live and are financially ready to make the investment, buying a home may be a great option for you!
With a combined total of over 60 years of experience, our Greater Iowa Mortgage Team is always ready to guide you through the home-buying process, and can help make your dreams a reality!
Original source: https://www.greateriowacu.org/news/blog/how-to-make-a-decision--buying-vs-renting/