Buying Versus Renting?
As a Realtor® in Pullman and a member of the Whitman County Association of Realtors®, I take great pride in helping buyers find a house to call home. During these times of economic difficulty, I am often asked “should I buy or rent?” And with values great in Pullman and low interest rates, now may be a great time to buy for you. Each situation is unique, but here are some things to consider.
Obviously, the first reason is PRIDE OF OWNERSHIP. We live in a great country where we have the privilege to privately own property. And many many of us dream about owning our own home. I know I did, and when I finally achieved that goal it was a momentous day!
Second, is THE OPPORTUNITY TO CREATE WEALTH. This is done both through APPRECIATION and EQUITY. Real estate is not like the volatile stock market with sharp increases and decreases. Instead, it is a long term investment that yields long-term growth in value. For example, on a typical fixed mortgage you are decreasing your debt with each and every payment that you make! At the same time, as the value of your home rises, you are gaining appreciation on your investment! It is a WIN-WIN situation! When you pay rent, it is money gone never to be seen again. And instead of creating your own wealth, you are creating wealth for your landlord.
TAX BREAKS is the third reason for owning your own home versus renting. The US Tax code allows home owners tax deductions for the interest that you pay on your mortgage, paid property taxes, as well as some of the costs involved in buying your home. This is a great incentive!
Fourth is STABILITY. When you have a fixed mortgage you know exactly what your payment will be and that will not change. Rent, however, is always subject to increases. As rental property becomes less available, it is inevitable the rent prices will increase! It is the rule of supply and demand.
Fifth is THE FREEDOM TO DO AS YOU WISH WITH YOUR PROPERTY. You don’t have to ask permission to improve the property. The house belongs to YOU! The choice is YOURS! And best yet, most improvements you make to your property iven over time increase YOUR HOME‘S VALUE!
These are just a few of the benefits of owning your own home. There are so many more!
What if you can’t buy a home now? Make steps to purchase in the future! There are a great many things you can do to get ready!
Whether you are ready now, or would like to prepare for the future, please feel free to call or email me. I am here to help!
Lori Cofer, Realtor®
