Here's Why Renters Should Become Homeowners
As the middle class continues to decline and as political unrest continues to create feelings of uncertainty for many Americans, a longing for a sense of security pervades the nation. For those living in Central Ohio, these issues are exacerbated by skyrocketing rents. But we at Take A Look Real Estate Brokers are devoted to helping you to change not only your mindset, but your economic reality through homeownership. In this article we will share 5 reasons why you should consider home ownership as a better alternative to renting.
When you buy a home, you receive tax benefits that you wouldn’t receive as a renter. The tax laws are more supportive of owners of homes and business. According to mortgage calculator.org, homeowners in 2019 can deduct up to $750,000 in interest expenses and exclude up to $250,000 in capital appreciation. For many people, those deductions can be helpful to take care of other expenses or to put towards education, a business or retirement in the future.
When you own a home of a similar square footage as the one you currently rent, the monthly mortgage on that home is typically less. Where the average rents in Columbus are around $1,500 a month, a home with a $130K mortgage can garner you a monthly mortgage payment of under $1,000! That extra $500 in rent that you are giving to the owner of your home or apartment of complex is increasing his or her net worth… not your’s. Think about that the next time you pay your rent.
When you pay your mortgage, though you are giving it to your mortgage company to pay back your loan, you are still building a nest egg for yourself for your future. If you purchase wisely, at the point that your property increases in value, you then have equity. That equity can be used to purchase another property, to put towards education or retirement or even help you fund a business opportunity you have dreamed of. When you own, you are paying yourself. Remember that.
Neighborhoods that are populated by owners are better for the community. Compared to neighborhoods where consistency in upkeep and maintenance may be sub-par, owner filled communities tend to better maintained and cared for to a higher standard. Owners, take… well… ownership of their properties and yards. They understand that the upkeep will affect their investment and their futures. So they take great initiative to resolve the issues that arise. Also, in neighborhoods filled with owners, members pay closer attention to the traffic, the people, the children and the elderly with a little more care. Therefore, you are likely to feel safer and more secure than you would in a neighborhood of temporary renters.
Sometimes times get hard. Layoffs and medical concerns can create periods of a slower influx of income. Because of that paying, paying your monthly expenses could be a bit harder than in times of stability. Understandably, landlords aren’t always so forgiving of late payments, because often they are depending on the rent payments from their tenants to pay off mortgages of their own. In those cases, in Ohio, it only takes 3 days to get a notice tacked on your day and a request for you to pack up and move out. However, when you own your home, you get to buy yourself a little more time. Your payment might be due on the 1st, but by the 15th or even the 30th, no one is rushing to your door to serve you with a notice to vacate if you have not made that mortgage payment. This allows you greater freedoms and flexibility to reorganize your budget and find a creative solution for raising the money to get current.
Come on out to our “It’s Time To Own It” events on Saturday March 23, 2019 from 2:30 to 4:30 pm and on Wednesday March 27, 2019 from 6:30 to 8:30pm to learn how you can begin the process towards home ownership. We’ll have great speakers and you’ll be educated on getting credit and cash ready to purchase. You’ll hear from our agents, title agents and other real estate experts on everything from loans, to inspections, to appraisals, to closing expectations. To get registered click here and we look forward to seeing you at our brand new office at 2957 Stelzer Road!