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Are you in the midst of deciding whether you should continue renting in Des Moines or take the leap to homeownership? Purchasing a home is a big financial commitment, and it can be a tough decision to make. Owning your own home has many advantages, and here are some to think about when making your decision:
It Belongs to You
Your home, once you’ve purchased it, is yours to do with what you want. You get to choose the layout, landscaping, paint colors, appliances — in short, everything. You can personalize every facet of your home to your taste and requirements. It’s a blank slate that can be modified however you see fit. Have you always wanted a strikingly colorful front door? You can do that. Do you dislike carpeting? You can tear it all out and replace it with tile or wood flooring. Before you buy, find out if there’s a Homeowner’s Association (HOA) and if so, do they have any restrictions on changes you might make. Knowing this in advance can help you to find the perfect place.
It’s an Investment
Purchasing a home is an investment, and you can add value by making upgrades, which will increase your equity. You’ll be acquiring a valuable asset that will appreciate annually. Also importantly, every monthly mortgage payment you make is not just applied to your interest but also the principal. Each payment lessens the amount you owe on the house. When you couple that with the annual increase in value, you’re always increasing your equity.
You’ll Be Able to Predict Your Payments
Homebuyers have many mortgage options available to them. If you go with a fixed-rate loan for fifteen or thirty years, your monthly payment will not change for that duration. Conversely, rental contracts generally involve a lease that has a six-to-twelve-month term. When that rental lease expires, you may be faced with an unexpected increase in rent. You’re protected for the length of the lease, but after that, your landlord may want to renegotiate. They could also decide to sell, and the new owner could choose to live there or rent it out to someone else. Ultimately, renting is unpredictable compared to the security of owning your own home.
You’ll Have Additional Tax Deductions
There will likely be some upfront costs (like property taxes, downpayment, and HOA dues) when you buy a house, but many of these are tax deductible. There are other tax benefits that may be applicable, too. You may be able to deduct your private mortgage insurance, or there could be a benefit if you make environmentally-friendly upgrades to the house. Consult with a tax attorney in advance to see the full picture. Factoring in these deductions, owning a home can often be considerably less expensive than renting.
Stronger Community Roots
When you commit to buying a home, you’re also making a commitment to the area where you’ll live. You’ll be part of the community for a number of years. The property taxes you pay will go towards both maintaining and improving your community. Having pride in your home shows your pride in the neighborhood, which makes it easier to form stronger community ties.
If you buy a house, that’s your house. You can stay there as long as you want to and, ultimately, have greater control over your life — and your future.
If you’d like to talk more about homeownership and if it’s right for you, or if you need a mortgage pre-approval or a recommendation for an experienced, local Realtor, please get in touch. I’d be happy to help in any way I can.