Are you trying to decide whether to buy a home or rent one? Before making your final decision, know that there are a few clear financial advantages to buying a home, especially for buyers in their 20s and 30s.
Reason #1—Buying a home is actually less expensive than renting.
According to Trulia’s Rent vs. Buy Report, buying a home is 23% less expensive overall than renting in 98 of the nation’s top 100 real estate markets.
Reason #2—You are paying yourself.
The average rent in the greater Kansas City area is $1,000/month (according to Zillow). Rather than hand over $12,000/year to a landlord, when you buy a home, you are actually paying into an investment that you can later resell to recoup your money. You may even get back more than you originally paid (see reason #3)!
Reason #3—Your investment can grow over the years.
It doesn’t always happen, but your home may actually grow in value. In areas where real estate values continue to grow year after year, your home may sell for a higher price than you paid for it originally.
Reason #4—There aren’t any tax breaks for renting.
Currently, mortgage interest is deductible from your income tax, which lowers your overall annual tax bill. Renting has no similar tax breaks.
Reason #5—It makes retirement easier.
Once you do finally pay off your home, retirement will be much easier with zero monthly mortgage payments. (And if you pay it off while you’re still working full time, it will be like getting a raise!)
Reason #6—Your monthly housing payment is fixed.
Rent payments increase year after year. However, with a 30-year fixed mortgage, your monthly mortgage payment will still be the same in 30 years—so you know you’ll be able to afford it.
Ready to buy a home?ReeceNichols.com is the #1 real estate brokerage website in the Kansas City region, updated every 15 minutes with new homes for sale.