Owning a home has many tangible (and non-tangible benefits). It is your property, so you can make all of the aesthetic decisions, which comes with the pride of ownership.
Tennessee real estate is something many homeowners want to invest in. Experts say that roughly 82 people move to Tennessee daily! This state is renowned for its low cost of living, vibrancy, and mild weather.
So now that you have a wonderful home (that you own), you need to redecorate. Although there aren’t many rules to decorating your home, picture frames add a personal touch.
Don’t resign yourself to the rent trap; all you are doing is paying someone else’s mortgage. We have five reasons why buying a home is cheaper than renting one.
No Annual Rent Increases
Your mortgage payment will never fluctuate when you have a fixed-rate mortgage on a home. Unless a tenant lives in a rent-controlled building or neighborhood, their rent will likely rise by up to 10% yearly.
With a fixed-rate mortgage, the homeowner is protected from sudden (potentially substantial) increases in their monthly repayments.
A Mortgage Ends
A mortgage is a long-term loan that can be “paid up.” This means that once you have paid the lender the loan amount plus interest, you own your home, and there are no more monthly payments. Your only remaining expenses for your property are the taxes and utilities.
Budget Stability
Mortgage payments represent the majority of housing payments for owners, so they provide a lot of stability to their budget. With a fixed-term mortgage, you know what to expect. There can be no surprises.
When you rent a home, your monthly rental can fluctuate (depending on your area). Whether you rent or buy a house, you are responsible for the utility bills (electricity and water), so adding this as a buyer’s only expense is not a fair comparison.
Usually, homeowners who lease out their property charge more than the mortgage repayment. For example, if your rent is $1 500, your landlords’ monthly repayments might only be $1 000. Landlords do this to cover any damages, taxes, homeowners fees, and insurance.
Mortgage Is Lower Than Rent
Despite the high initial cost (including the down payment), owning a home is often far less expensive than renting. Generally, when you rent a home, you are paying your landlord’s expenses plus a little on top so they can make a profit.
Your money helps to increase your landlord’s equity in the property, which means they can sell it at any point, thanks to your payments.
Tax Deductions
The tax rules provide numerous benefits to homeowners, making homeownership an excellent investment. When filing your yearly income taxes, you can deduct mortgage interest, insurance, and property taxes.
Consult with your accountant to know exactly how many tax benefits you are eligible for.
Buying a home is an excellent place to start when you’re focused on building a future of financial freedom. Investing the difference between renting and buying a property may make sense if you can afford it.