Buying a home versus renting one is a common decision for potential homebuyers. Purchasing a home is a big commitment, so it’s important to understand what homeownership entails. There are tons of benefits to owning your own home, so consider these points when deciding whether to rent or buy:
1. It’s All Yours! Rental properties often come with strict rules about property improvements. When you own your home, there’s no limit to the changes you can make! You’re free to paint, add on a deck, or improve any part of your property. Also keep in mind that any upgrades you make in a rental property ultimately benefit the landlord in the long run, while improvements to your own home add value that could pay off when you sell.
2. Steady Payments- As a renter in a home, you could be in danger of rising rents when your lease contract expires. As a homeowner, your mortgage offers steady payments for the term of your loan, so you won’t have to worry about the possibility of a higher payment. You could even make extra payments on your loan to pay it off faster.
3. Appreciation for the Future- For many homeowners, their home is their biggest and most valuable asset. The longer you live in a home and keep up with your monthly payments, the more equity you build. That equity increases your financial stability and can be a solid nest egg in the future. Your home will mostly like increase in value as well, depending on how long you live there and the market conditions in your neighborhood.
4. Tax Benefits- Homeowners receive certain deductions when tax time rolls around. You can claim deductions on your mortgage interest payments and property taxes. One way Texas homeowners can save on their property taxes is by filing a Texas Homestead Exemption when they purchase their new home. Learn more about the benefits of the Texas Homestead Exemption here.
5. Community Involvement- As a homeowner, you have many different opportunities to make an impact on your community. If your neighborhood has an HOA, you can participate and have a voice in local decisions. Your tax dollars also go toward improvements in your area for public works like schools and infrastructure. Since homeowners tend to stick around longer than renters, there’s a better chance of forming strong friendships with your neighbors.
Whether you’re ready to buy or even just considering it, our agents are waiting in the wings to answer your questions and help you find the home of your dreams. Get an overview of the process on our Austin Buyer’s Guide, or just give us a call for more information on Austin real estate!