Tuesday, October 17, 2017 / by David Veenstra
Kalamazoo Real Estate - There could be some legitimate reasons for not buying a home but indecision should not ne one of them. Indecision is rooted in not having enough information to move forward to own a home or continue renting. The Veenstra Team is typically able to provide the right information and connect you to the right service providers to provide the needed information to allow our buyers and sellers to make the wisest real estate decisions.
If you keep renting, at the end of the year, you have had a place to live and a pile of receipts that helped the landlord pay for his house. Deciding to buy a home will give you a place to live that is yours and all the things that come with that.
When you consider principal reduction, appreciation and tax savings, your monthly cost of housing could be much less than the rent you’re paying. The principal reduction included in each payment is like a forced savings account that increases as your mortgage balance decreases. Your equity in the property will also grow due to appreciation as the home goes up in value. The equity is part of your net worth and an investment in your family’s future.
The income tax savings can be an additional financial consideration if the combined interest and property taxes are greater than the allowable standard deduction.
There may be a very few reasons that renting a house is the right decision for someone. For example, If you plan to live in the area less that 4 years, it MIGHT make more sense to rent. If you live every month from hand to mouth and don't have the ability to create a reserve fund for any repairs that might need to be done on short notice, then renting may be the right decision for you. Renting almost always costs more money, but money shouldn't be the only consideration. What makes the best sense however, is gathering enough information to make an informed decision. Don't allow indecision to make a default decision.
Trends are showing that both tenants and homeowners are staying in their homes longer. It’s been said that whether you rent or own, you’re paying for the home. Do you really want to buy the home for your landlord? Click to check out your numbers on this Rent vs. Own Calculator and then, call us to help you make the best decision for you. We have great, free guidance for first time home buyers and we are eager to help you! Call us at 269-350-5514.