The Benefits of Buying Your Home Over Renting
For many New Jersey residents, owning a home is a lifelong dream. However, the recent rise in interest rates is causing a rift in the home buying market with residents questioning if now is the right time to make the purchase. Depending on where you want to live and where you are in life and your career status, you may find that buying a home is actually the right move. With many areas seeing a rise in the cost of rent, buying a home is often more affordable than you think.
Take a look at these six benefits of buying your home over renting one.
- You can make it your own.
Unlike when you rent, buying a home means you can do nearly anything to the space that you want and make it your dream house. You don’t have to get paint colors, new flooring, or other home improvement projects approved by a landlord or worry about losing a security deposit as a result.
- There are more tax benefits.
As a homeowner, you get to deduct mortgage interest and property taxes on your Federal income tax return each year. Since you typically pay more in interest than the outstanding mortgage amount, this deduction adds up as big savings at tax time.
- Your mortgage payment will remain steady.
When you rent an apartment or home, there is always the possibility that your rent can increase when you renew your lease. Depending on the amount, it can put a damper on your financial health. When you buy a home, you know what your monthly mortgage payment is for the next thirty years, making it easier to set a budget and avoid unwanted increases in your monthly expenses.
- You gain equity in your home.
As you pay down the monthly mortgage payment, the loan amount decreases and the equity in your home increases. This equity is often referred to as “forced savings” and can be beneficial in two ways. First, homeowners can use the equity to take out a line of credit for major home renovations. Second, if you decide to sell the home later on, you often see the equity back at closing.
- No worries about a landlord selling the building.
Renting means you always have the possibility of being kicked out of your place because the landlord sells the property or decides to do something different with it. As a homeowner, you can’t be kicked out of your home (unless you don’t pay the mortgage payment).
- Become part of a community.
Buying a home means you get to build roots in a neighborhood and community. Over time, you become friends with neighbors and establish strong relationships with those nearby. This is often not the case with renting, because renters don’t stay in the same place as long as homeowners.
Even though interest rates have recently climbed, they are still lower than they were twenty years ago when homebuyers were paying 6-7% in interest. If you are looking to buy a home in New Jersey, consider The Heights in Jersey City. This upcoming part of town offers an array of beautiful properties, restaurants, and activities for those of all interests.