There are all kinds of advantages to homeownership. In today’s market, the time has never been better to make the move from renting to owning. Here are a few things you should consider:
There’s no way to build equity in a rental property, but in your own home, you can. Equity is a homeowner’s value owned in a home. For example, if you put 20 percent down on a $100,000 home, and use a loan to cover the rest, you technically have $20,000 in equity. Another way to look at it would be if you then sold that same house for $100,000, $20,000 would go right back into your pocket while the rest would go to the bank to cover the remainder of the loan.
Equity can also be gained either by owning a home over a long period of time, paying down more of the principal balance of the loan; or, by updating or renovating the house. This builds immediate equity.
Although your rent isn’t tax deductible, it is possible that the interest and property tax portion of your mortgage payment could be. Any interest paid from a loan on your primary residence (your home) is tax deductible. This alone can save you thousands of dollars a year, compared to renting.
Typically, when you review or renew your lease, your rent will increase. However, with a long-term, fixed-rate mortgage, the principal and interest payment never go up.
Just Getting Started?
Still on the fence about owning a home? Take a look at some additional video resources we have that touch on typical hurdles first-time buyers think they can’t jump.
Working in Ohio for more than 20 years, we have had the great opportunity of meeting and connecting with the best in the industry. If you need help picking out a great Realtor® that fits your needs and goals, we’re here to help!
*Not intended as accounting or investment advice. Contact your financial representative for more information. This is not a commitment to lend.