Do you ask yourself: Should I continue renting or should I consider owning a home?
There are major financial benefits that homeowners get. I hope it will help you to evaluate if buying is right for you.
1. Low Home Prices.
It is the best time to take advantage of low home prices that you might never see again and get into real estate game, especially if you are a first-time homebuyer.
2. Low Mortgage Rates.
Since mortgage rates are historically low, it is no doubt that borrowing money is cheap. Over the long run low interest rates can make owning a home much cheaper than renting. Rent might be going up every year but not your mortgage payments, if you get a fixed rate mortgage.
3. Tax Savings.
Homeowners have additional expenses, such as insurance, property tax, maintenance, renovations, HOA dues, but they also have tax-deductible benefits:
Points (interest you pay upfront at closing)
Private Mortgage Insurance
4. Building Equity.
That is the value of the property you actually own. For instance, if your home is valued at $200,000 and you owe to the lender $140,000, you have $60,000 in equity.
5. Paying off your own home instead of your landlord’s.
You are not gaining anything while renting but throwing away money on rent.
No doubt this is the best time to buy. However, you should look at your personal situation before making a big decision to buy.
If you know you can stay in a home for at least 5-10 years, the long-term financial rewards of owning a home can really tote up.