Buying a house is more expensive than ever. But the benefits still outweigh the drawbacks. If you have the money available and are unsure whether to keep on renting, here are five reasons why you should look into buying property.
You’re paying for what you own
When you rent a property you’re simply lining a landlord’s pocket. You don’t ever get that money back – unlike when you buy a house. Whilst taking out a mortgage does result in paying interest rates like any loan, the majority of what you pay is equity. If you sell your property, you will make this money back. When you move from a rented property, you’re lucky if you get back the deposit.
It’s a good investment plan
Appreciation of property means that flats and houses are constantly going up in value. Buy a house and sell in a few years’ time and it will be worth more, earning you money. Some people are able to climb the property ladder this way, constantly buying and selling in order to get themselves a bigger property. You can even downsize and make a healthy profit. You can even buy a property and rent it out to other people, making even more of a profit.
There are tax benefits
The US Tax Code allows you to deduct some of the interest you pay on your mortgage. There are also laws allowing you to deduct various property taxes as well as other costs involved when buying a home.
Budgeting is now easier
Property may cost more than ever before, but there are now tools and services available that make budgeting much easier. There are comparison sites for mortgages and information sites on legal requirements. You can even use the internet to find a mortgage calculator with PMI and taxes. Work that might have once involved investing in advice from property lawyers, mortgage brokers and accountants can now be done for free at home from your computer.
You have more freedom than renting
With some rented properties you can’t even hammer a nail into the wall without asking the landlord. Once you’ve bought your own property you have complete control over it. Not only can you decorate the place, but you can build extensions, knock down interior walls, refurbish your kitchen and bathroom, convert the attic and do whatever you want with the garden. When it comes to major adjustments you’ll still have planning permission to contend with, but you essentially can do what you want with the property.
Some changes can also further add to the appreciation such a loft conversion or an extension, making you more money if you choose to sell. In fact, some people buy property with the sole intention of doing it up and selling it on. A dab hand at DIY may even be able to do some of it themselves, saving money on having to hire handymen.