Thinking about signing a rental agreement on your next home? You might want to think twice. The advantages of purchasing a home almost always outweigh any benefits to leasing a rental unit.
Renting can seem appealing to some, including those who plan to relocate or those unable or unwilling to commit to a mortgage loan. But as the economy continues to gain strength, more consumers have begun to grasp the pocketbook advantages of home ownership. Some 66 percent of respondents to a Fannie Mae survey in February said they’d be inclined to buy a residence if they moved, while the share of those who said they’d rent decreased by 5 points to 29 percent.
Consider the plusses of homeownership:
1. Building Equity
When you buy a home and begin paying down the principal owed in your mortgage loan, you gradually build equity in your property. That equity is money you get to keep if you ever sell your home; or, if you ever need extra cash, you can borrow against your equity via a home equity loan. By contrast, renters who lease and pay money every month do not build equity and will never see those rent dollars again.
2. Fixed Rates
If you purchase via a fixed-rate mortgage loan, you can count on paying the same, consistent monthly amount for principal plus interest throughout the term of your loan, which provides a level of financial certainty and stability. Rent, however, is vulnerable to inflation and cost-of-living increases that can rise whenever your lease term is set to renew or expire.
Eligible homeowners can deduct, up to a certain point, their paid mortgage loan interest, property taxes and discount points (paid at closing) on annual federal and state income tax returns. Some buyers may qualify to deduct certain home office expenses and energy efficiency upgrades made to their homes.
4. Return on Investment
With the real-estate market in full rebound mode, prices of homes in desirable locations like the sunbelt of Lewiston, Idaho and Clarkston, Washington are headed up. A buyer who can afford to purchase a home now and is looking for an edge will likely see significant appreciation in equity down the road.
5. Perfect Timing
Mortgage interest rates still remain close to historic lows, making this an excellent time to borrow to finance your home purchase. However, rates are expected to rise, perhaps as soon as mid-year. Have you been sitting on the fence? Now is the time to act in order to lock in the most advantageous terms.
Are you eager to buy a home? Can you demonstrate that you’re a credit-worthy candidate with a track record of solid employment? Don’t miss this window of opportunity!
Schedule a consultation with an experienced real estate agent from Coldwell Banker Tomlinson today. As one of the biggest real estate firms in the Treasure Valley, Coldwell Banker Tomlinson completes one in three of all local real estate transactions. Our professionals know the market and can help guide your decision, show you a range of available homes in your preferred area and price range, position you to get qualified for a mortgage and assist you in scoring a great bargain on the home of your dreams.
Contact your Coldwell Banker Tomlinson office in Lewiston/Clarkston, Moscow, Idaho, and Pullman, Washington, are dedicated to providing excellent service to buyers and sellers in the real estate market.
Do a quick search of Coldwell Banker Tomlinson homes available today in the Lewiston Clarkston Valley and in Moscow, Idaho and Pullman, Washington by visiting:
325 Main St., Lewiston
217 S. Main St., Moscow
405 S Grand Ave., Pullman,
Follow us on Facebook, Twitter and Pinterest.
No one sells more homes in Idaho! Call your local Coldwell Banker Tomlinson office today.