Top 4 Financial Benefits of Buying VS Renting

Are you on the fence about renewing your lease or finally buying a home? You’re not alone.  Buying your first home is a big decision, but from a financial perspective, it will actually save you money and even make you money in the long run. 

Here are the top 4 financial benefits of buying a home instead of renting:

1. Predictable Mortgage Payments 

When renting, your monthly payments will likely increase annually. However, when purchasing a home with a fixed-rate mortgage, your monthly payment stays the same until it’s paid off. 

2. Appreciation of Home Value 

On average, your home value will increase by 5% annually, so you’re building equity on an asset. Paying your mortgage every month can be compared to a savings account – you’re investing in your home and its value increases over time.

Meanwhile, rent payments go directly to the landlord and present no long term benefits to you. 

3. Tax Benefits of Homeownership 

Homeowners can deduct mortgage interest and property taxes on their tax returns, saving even more money. 

4. Plan for Retirement

If you buy your home, the idea is to eventually pay off the mortgage. Ultimately, reducing your monthly expenses drastically, which will be a huge help in retirement. 

Are You Ready to Buy?

If you’re unsure whether you’ll be able to qualify for a loan or how much you can really afford, contact us at The Mendel Group for immediate assistance.