Buying A Home – Should You Rent Or Own A Home?

How often have you heard from other people that home ownership is more expensive than renting? Many renters believe this same myth, not knowing which alternative makes the best financial sense for their situation. How often have you heard other renters lamenting over the fact they don’t own a home, yet they aren’t willing to take the steps needed to pursue this option, afraid they’ll never qualify. Unfortunately, when the home market is really hot and prices start shooting upwards, many renters give up hope of pursuing the option of home ownership.

As you read this article, you’ll learn about some important homeownership facts that will give you hope to pursue buying your own home. After considering the benefits of personal freedom, tax benefits, future increases in rent, and the ability to make money through home equity, you’ll be amazed to find out owning a home can be cost effective in the long run. If you really take the time to figure out the thousands of dollars in lost equity you could have saved, you’ll jump at the first opportunity to buy a home.

When you own a home, you’ll be able to deduct most of your monthly loan payments from your taxable income. Therefore, what you actually spend for a home may decrease-depending on your particular Federal, state, and local marginal income tax rate(MTR). The savings could amount to twenty to forty percent of the actual payment you make each month.

Let’s see how affordable home ownership can be-let’s say you have a monthly mortgage payment of $2000 (which includes principal, interest, property taxes, and insurance). After calculating all tax deductions, your final mortgage payment could end up around for $1400 each month. While your real savings will vary with your personal conditions, it’s important to know buying a home can be more cost effective than renting. To properly evaluate your financial circumstances, seek the guidance of a season tax attorney, accountant, or mortgage agent. After speaking with a professional, you may just decide owning a home is right for you.

When you graduate to the position of the homeowner, not only do you gain financially, but you get to experience the joys of individual freedom. Think about how wonderful life would be without a controlling landlord telling you who can visit your home or what pets you can keep. If you were to consult with former renters, the benefits of owning a home far outweigh the sacrifices needed to make it happen. It’s difficult to put the price on the benefits of individual freedom and home stability when you become a property owner.

When you first compare the money you spent each month as a homeowner, it may seem a lot more than renting. If you live in a community where real estate costs are high, this may be the norm. But don’t let this deter you from buying a property. The financial rewards accrue over time and you could end up saving thousands of dollars in the long run.

As a home owner, you have the potential to create a large amount of wealth. History has proven that even when the real estate market fluctuates up and down, homeowners outperform renters when it comes to their financial gains.

Are you looking at Santa Ana homes for sale? Check out these Santa Ana Realtors to help you find one!