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Why Buying a Home in Chicago Still Makes More Sense Than Renting

Feb 3, 2023 | Industry News

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Are you considering buying a Chicago home? Or are you wondering if it’s still better to rent than buy? The debate between renting and buying has gone on for years. While renting can be simpler, there are many advantages to buying a home that make it a more attractive option — even in the current market.  Let’s take a look at why purchasing a home is still the better option than renting:

Financial Savings

First of all, homeownership comes with some significant financial savings that renting simply cannot offer. One of the most important of these savings is mortgage interest deductions. Depending on your income and how much money you spend on your mortgage each year, you may be allowed to deduct the interest — either all or part — from your taxes. In addition, when you own a home, any repairs or renovations will add to the value of your property and increase its equity. However, when you are renting, any maintenance costs are solely dependent on the landlord.

Tax Advantages

When you own a home, there are several tax advantages that can help reduce your overall tax burden each year. For instance, if your income qualifies, certain energy-efficient improvements can qualify for federal tax credits. Furthermore, the financial gains from the selling of a primary residence are usually tax-free up to $250,000 for single filers and $500,000 for married couples filing jointly. This means that whenever it’s time for you to list your house for sale, you won’t be required to pay any capital gains taxes, as long as you don’t exceed these limits.

Stability and Security

Renting a residence often means dealing with landlords who can ask for whatever rent they deem necessary, or move tenants out whenever they please due to changes in market conditions or their own personal circumstances. On the other hand, owning a home gives people stability by allowing them to have fixed monthly payments and remain in their homes as long as they want (so long as they keep up with their payments). This is especially important during times of economic uncertainty or upheaval because homeowners don’t have to worry about being evicted if times get tough — something renters do need to worry about during difficult times like these.

 

In short, homeownership brings numerous benefits over renting — especially in Chicago where mortgages are generally cheaper than rental rates and there are many additional financial incentives available through state and federal programs that are designed specifically for homeowners.

 

So, if you’re looking for stability and security combined with potential financial savings, then taking advantage of these opportunities now could put you ahead financially down the road. Why wait? Invest today in a home of your own and start reaping the rewards tomorrow.

 

If you’d like some recommendations for experienced, local Realtors, or if you need to get pre-approved for a mortgage (so you know what you have available), please reach out to us. We’re always happy to help.

 
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