Still trying to decide whether or not you should buy a home? It’s a big decision. But it’s also a big step towards securing your financial well being. Do you need to be convinced? Here are a few reasons why you should stop paying rent.
Your are already paying a mortgage. But the mortgage you are paying is the landlord’s mortgage. What do you have at the end of the year? Have you built equity? No. Do you have tax deductions? No. Do you have a stack of cancelled checks for the rent? Yes.
Someone else is making money on the property and building equity. Not you.
Can you make the place your own, and decorate they way you want? No. The landlord has the walls painted, usually white or neutral. Do you want color in your life? Do you want to paint the walls blue? Or red? or ??? Sorry, not without asking permission from the landlord, which usually is not granted.
Are you saving money by renting? I don’t see how. Typically a mortgage payment, including taxes and insurance, is less than the rental payment on a typical property. And the owner takes the real estate tax deductions. The mortgage interest deductions also.
We pause now for a word from our sponsors, Bunny and Art Reiman – Realtors.
Please visit our web sites , www.BunnyandArt.com www.55PlusInOcean.com www.55PlusinMonmouth.com , to begin your search for your new home. Or give us a call at 732-598-7700
We’ll now return you to our blog post.
Do you have the necessary down payment of 20%? If not, guess what? You don’t need 20% down! FHA loans are very popular, especially among first time buyers. And all you need is a minimum of 3.5% down. You can save that much by getting coffee at WAWA instead of Starbucks.
Do you like dogs? If you own you decide if you have a dog. If you rent, the landlord decides.
And here’s one final reason.
Everyone else is doing it.
Do you want to be the last of your group to buy your own home?