Buying vs. Renting: 5 Benefits of Buying a Family Home

Filed under: Temecula Real Estate

Tagged with: · ·

Are you still renting a home? It’s good that you have a nice place to share with your family, but you need to consider the things you are giving up by paying rent instead of a mortgage.

Reasons Buying is Better than Renting

Here are a few advantages you can enjoy when you choose to buy a home instead of renting:

  1. Pay Down the Principle: If you own your home, part of the payment on your owner-occupied property is used to pay down the principal balance on your loan. At the end of the year, you will have equity in your home since you paid down the loan. Over time, the goal is to pay off the loan completely so that you have a mortgage-free place to live in retirement. Even if you choose to move, this equity can be rolled into the purchase of a new home.
  2. Tax Breaks: Even with the new tax laws in place, you still will get a tax break of up to $10,000 in deductible mortgage interest.
  3. Value Appreciation: Not to mention, you will also benefit from future appreciation on the home which ranges between 7 – 8% historically. Yes, we have peaks and valleys in the industry. But overall, holding onto your home long-term means that you are going to see a 7 – 8% increase in the value of the house per year.
  4. Tax-Free Income: When you are ready to sell the house, you can enjoy tax-free income from the equity that was built over the years. If you are single, the tax-free threshold is $250,000 in home equity. A married couple can enjoy up to $500,000 in tax-free home equity.
  5. Pride of Ownership: Also, don’t overlook the benefits that come from pride of ownership. Make the house your own! You can customize this house to meet the needs of you and your family.

There’s no question that buying a home can offer many financial benefits. If you are considering homeownership, then you can contact me at any time for personal recommendations. Call, text or email: (951) 473-0390 or [email protected]