Are You Throwing Money Out the Window?

Dec 8th, 2012 | By | Category: Tips & Tricks & Handy Advice

Over this last year, I have helped many buyers make the transition from renting to owning their home. With  record low interest rates and relatively low list prices, most renters are finding that their mortgage payments are actually lower than their lease       payments were! In spite of this, some renters are still on the fence. If you are reluctant to make the change, consider these clear reasons:

Build your own profit. Paying rent to your landlord helps build their potential profits and it is money you will never get back. It really is like throwing money out the window. When you own your home, you still make a monthly payment, but it reduces the amount owed on your home. As the market continues to improve, your home’s value will continue to increase and the          difference will result in profits in YOUR pockets when you sell.

Stable monthly payment. Rent payments can rise each time you renew your lease, but your fixed rate mortgage payment remains the same for the life of the loan. The amount you pay for property taxes and insurance may fluctuate, but the principal and interest portion will remain the same.

Security. I’m not talking about security in regards to crime…I’m talking about the security that comes from being in control of your home. You don’t have to worry about changes or improvements you make, or about anyone deciding to sell the home you are living in. You are the boss. Plain and simple, and that leads to a secure feeling in your home.

Tax Breaks. As an added perk of owning your home, the IRS currently allows you to deduct the interest portion of your mortgage payments, as well as your property taxes. There are additional tax deductions available for implementing certain energy efficient features in your home.

Lastly, remember the golden rule of real estate investing: Buy low and sell high. Don’t miss your chance to buy low, before prices rise much more! Questions? Call me at 248-2130. Mary Lucas Benavides, Associate Broker The Home Team at Long Realty.

Leave a Comment