The saying is true… “There’s no place like home!”
If you’re moving to northern MN or just trying to figure out whether you should buy or rent, check out this list of seven reasons to buy your own home, rather than renting and paying your landlord’s mortgage payment.
BUILDS CREDIT – Buying a home helps build your credit which in turn helps you receive better rates on the things like car loans, credit card interest rates, bank loans, home equity lines of credit, and more.
MORE MONEY BACK AT TAX TIME – The significant tax benefits of buying rather than renting may be reason enough to invest. Homeowners are allowed to deduct mortgage interest and property taxes when they file tax returns each year. You can also deduct some closing fees which typically equals a larger tax refund.
NO ONE CAN TELL YOU NO! – You have total creative freedom. You don’t have to ask permission to paint a room, put a nail in the wall, plant a garden in the backyard, or even if you can get a pet.
LANDLORD CAN’T GIVE YOU THE BOOT! – Say your landlord decides they need some extra money and they want to sell the house you are living in or they find out you have a dog and your lease says “no pets”. You may have no choice but to move, putting you in an unexpected financial burden. When you own, you have a measure of security & stability for you and your family.
SMARTER/CHEAPER THAN PAYING RENT – In most situations, paying rent is more expensive than buying. In essence, you are paying your landlords mortgage and building his/her equity and credit. When a homeowner is making a mortgage payment, a portion of that payment is paying the loan down each month, giving the owner more equity in their home.
BUDGET STABILITY – Unlike rent where the landlord can increase your rent, with a fixed mortgage payment, you know exactly what to expect each month and each year.
IN THE END, IT’S YOURS – Every time you make a mortgage payment, you own a little bit more of your home. If you only pay rent for 30 years you own nothing.