It may seem like a no-brainer that most realtors own a home instead of renting an apartment, but after the economic dip in 2006, this wasn’t always the case. Due to everyone buying their homes at the maximum market price only to have these prices plummet, many people including realtors decided to rent instead of own.
This is no longer the case! Now that the housing market is extremely healthy, it is the perfect time to find homes for sale and we have some key reasons why to buy instead of rent.
1. Never Dealing with a Landlord Again
There are plenty of great landlords and property managers out there, but they aren’t all perfect. When your dishwasher breaks and you’re a tenant, you have to call the landlord who will then schedule your repair. This can take days or even weeks.
When you own your home, you don’t have to call your realtors for permission, you’re in charge! You can choose the service provider, when you want it repaired, and how you want the repair done. Landlords won’t allow you this freedom because repairs are often done with their contracted company on a schedule that usually involves them coming into your living space while you aren’t home. No one wants that, and when you own a home you won’t have to deal with this ever again.
2. No Inflation
One of the most common reasons potential buyers tell realtors they are looking for their own property is an increase in rent. Landlords need to cover their own assets, often this means the tenants foot the bill. When you buy a home and get a mortgage, your price is locked in.
Meaning that if you get a 25-year mortgage, your monthly payment will be the same today and on your final payment 25 years from now. This is an excellent tool because the cost of living is going up and rental prices will go up with it. You could be paying double in rent 10 years from now, but if you have a mortgage on your own home, you won’t have to worry about that.
3. Have It Your Way
When it comes to our living space, no one wants to be told what to do. When you rent, you can’t change the layout of your apartment without first getting approval. Owning your home saves you from this trapped feeling. If you want to paint your daughter’s room pink, knock a wall down to extend your living room, or convert the garage into a guest room, owning your home is the only way to get exactly what you want.
Realtors know first-hand that not every home is perfect, but they easily can be with simple modifications. My background in interior design and years of real estate experience has allowed me to see the potential of every home and find the perfect fit for any buyer, even when it needs a few changes to become their dream house.
4. Tax Deductions
One of the most underappreciated reasons to own a home is tax deductions. This is mainly because most people don’t know how many home-related deductions there truly are. Just ask your realtors and they will tell you that the list is substantial.
Some examples are your mortgage, which is tax deductible. Energy efficiency improvements such as solar paneling, energy efficient boilers, and many similar devices can also be tax deductible. And be sure to ask your realtors if you qualify for any federal deductions on selling your previous home because you just might save a huge sum of money.
The low down on equity is that it is fantastic. Ask your realtors for more detailed information about how equity works, but here are the basics.
Let’s say you have owned your house for 2 years and you get it appraised and the value of your home has now increased. You have gained free equity along with the amount that you have already paid off. So, if you’ve paid $25,000 off of your home which you purchased at $250,000, but that same house is now worth $400,000, you now have an equity of $175,000. This is how it would look: (new value) $400,000 – (old value) $250,000 = $150,000 + (paid off) $25,000 = (total) $175,000 in equity!
It may sound confusing but you can use a home equity loan or line of credit from this equity gain to improve your home, pay down debt, or a number of other new financial opportunities.
The Kovacs Connection is thrilled to become your realtors and help you find the best quality homes for sale in your area. Being in the top 1% of realtors worldwide takes dedication, not only to real estate but to making sure that you are happy with your purchase and your experience.
If you have any questions about buying or selling a home, please call us at 949-350-0146 or contact us and we will gladly discuss your options.
Photo Credit: Shutterstock/Alexander-Raths