As Millennials enter into the homebuying market, it’s the age-old question: is it better to rent or own your home? We understand the importance of buying and investing in a home – and there are a TON of reasons to take the plunge!
According to an article published by Business Insider, the average Millennial will spend over $200,000 on rent before buying a house – but Generation Z will spend even more. Generation Z will spend an average of 11 years renting before becoming a homeowner, one year less than Millennials.
Both Millennials and Generation Z will pay more in rent than any other generation – and it essentially goes toward nothing! Though a lot of responsibility, owning a home provides innumerable benefits – take a look at our top reasons to choose homeownership over renting:
Investment & Stability
While home prices move in short-term cycles, home value can increase if you stay in your home long term to provide a substantial return on your investment. Owning a home also provides a greater feeling of security and stability. Did we mention the rental investment income possibility?
As an added bonus, mortgage payments tend to be lower than rent, or at the very least equal to it. Monthly rent increases are always a possibility, but with a fixed-rate mortgage, homeowners can rest easy knowing their monthly payment will not fluctuate or increase even if other costs do.
Build Equity, Strong Credit History
To determine your home equity, subtract the amount owed from the total value of the home and the leftover amount is the home’s equity (the dollar value of your home that actually belongs to you). Two factors contribute to home equity:
- A portion of each monthly mortgage payment goes toward reducing the overall balance on the home, which serves as an increase in equity.
- As a home increases in value, based on the market and home sales in the area, the equity on the home also increases.
Not only does paying a mortgage improve credit history while building home equity, homeowners also have the option to borrow against their home equity for major expenses such as home improvements, education or medical expenses.
Homeowners also enjoy additional tax deductions on income taxes! Property and mortgage taxes may be deductible from federal taxes in addition to most state taxes. Especially early on in paying a mortgage, when the majority of payments go toward paying the interest on the loan, tax deductions can help put an notable sum back into your pocket.
While there are many reasons to purchase a new home over renting, these are just some of the most impressive. New townhomes at Spring House at Honey Farms also feature a number of included features such as luxury finishes, energy-efficient construction and a low-maintenance lifestyle.
To learn more about living the sweet life at Spring House at Honey Farms, visit www.HoneyFarmsLiving.com.