Buying vs. Renting: The Benefits of Becoming a Homeowner

homeowner

You have probably heard of horror stories involving people who took out a home loan and ended up buried in insurmountable debt. It can be scary to invest so much money into a property that you start to question if it is worth it. However, here are the reasons you should secure home loans from a Provo, Utah lender now to buy your dream home:

Freedom to Decorate

As a renter, you have probably encountered strict landlords who seem to enjoy saying no to every request. Whether you want to paint your bedroom wall or pull out the unsightly wall-to-wall carpeting, there are limits to what you can do in your rental home or apartment. Your landlord usually have the final say on whether you can make alterations in their property but, more often, you are not allowed to make permanent changes.

Your are limited to simply putting up a poster to decorate your bedroom wall or hang curtains over your windows to make the space feel cozy. However, if you own the property, the sky is the limit. You can tear down a wall to make a room bigger and mount decors, cabinets, or lights to make the place truly feel like your home.

Greater Privacy

To cut costs, many landlords use inferior building materials to construct a rental property. This means that neighbors can usually hear what the other tenants are saying or doing due to the thin walls between units.

If you own a property, you would not have this problem. You get the freedom to make modifications such as using concrete and stucco to build a wall so that there is a thick sound barrier that prevents your neighbors from overhearing your conversations. You also have the option to increase your privacy by installing a fence or a gate to keep outsiders out.

Tax Benefits

calculating tax

One attractive benefit of owning a real estate is tax breaks. The many expenses of owning a home — including mortgage interest and property tax — are actually deductible. This has considerably lowered the cost of owning the home and allows you to keep a bigger portion of your hard-earned money.

Cheaper Overtime

The upfront cost of buying a home is astronomical, which makes renting make more sense for many. However, the cost of owning a property may be lower over time.

In many major cities around the world, paying a monthly mortgage is cheaper compared to the amount you cough up for a rental property. This is true for 58% of the markets within the United States.

A Long-Term Investment

Investing in real estate is always a good idea. In most cases, the value of your home appreciates as the years go by. In comparison, if you invest in a car (although it is cheaper), it begins to depreciate as soon as you leave the dealer’s shop.

When you decide to upgrade and sell your home down the road, you can be assured that you will get a favorable return. The longer you live in the house, the higher it will cost when you finally decide to move out.

Another option is, when you are older, you may use the property as a rental to generate a passive income. For people who already have retired from their work, this is a great way to continue earning money to pursue passions and dreams they may have.

Regardless of these benefits, owning a property may not be for everyone. Be sure to weigh the pros and cons before you take the plunge.

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