(636) 898-0888 Toll Free: (877) 456-2900
Are you struggling to decide whether to buy a home in Chicago instead of continuing to rent? This is an understandable dilemma since purchasing a home is a huge financial commitment. However, there are advantages to being a homeowner which may help you in your decision making process. Here are a few to consider:
Freedom to Customize
When you buy a house, it’s yours to alter in any way you see fit. You determine layout, color of paint, landscaping, appliances, and so on. Every upgrade can be customized to your personal taste. It’s basically a blank slate— If you’re not in love with carpet, you can replace it with tile or wood flooring. Have you always wanted a front door that pops with color? Homeowners can paint the doors any color they wish. Something to keep in mind—if there’s a homeowner’s association, there may be some restrictions on the changes you are allowed to make. Finding out in advance will aid in your decision to purchase.
Buying a house is an investment, and many of the upgrades you make can add value by increasing your equity. In purchasing a home, you have now obtained an asset that will increase in value annually. Also, every mortgage payment you make is applied to both your interest and the principal. Each monthly payment decreases the total amount you owe. Combine that with the annual increase in value, and you can see the benefit as the equity continually grows.
There are dozens of mortgage options available to homebuyers. If you choose a fixed-rate loan over a term of fifteen or thirty years, your monthly payment will not change for the duration of that term. Conversely, rental contracts typically involve a lease that has a shorter duration of six months to a year. Once the lease is up, the terms may change, and you may be subject to a rent increase. Your landlord may also decide to sell the property and the new owner may want to live there or rent it to someone else. Renting carries an unpredictability that can be unsettling.
There are some additional upfront costs to owning a home—property taxes, mortgage interest, but these are tax deductible. You may have additional tax benefits as well, such as deductions for private mortgage insurance or making environmentally friendly. It’s best to consult with an accountant to determine which items be deducted.
Sturdier Community Ties
When you buy a house, you’re committing yourself to being a part of a community for a significant block of time. The property taxes you pay go toward maintaining and improving your community. Pride in your home reflects pride in your neighborhood and in turn, builds stronger ties to the community.
If you’d like to discuss whether it makes more sense for you to continue renting or if you should make the leap to homeownership, please reach out. I’d be happy to block off some time for you.
I can also help you find out what kind of mortgages you qualify for, which can be very helpful when considering options.