Owning a home has always been built into the “American Dream.” Many people miss out on this opportunity because they choose to rent a home because it is more flexible, and they believe it’s cheaper. As Montrose Realtors, we can confidently say that owning a home has many benefits. Buying a home has a bigger potential long-term payoff with tax advantages and quality of life benefits. When making the choice about real estate on the Western Slope of Colorado, it’s important to look beyond just the numbers before you make your next move. Learn more about some of the benefits of owning a home.
Putting Roots Down
When you buy a home you put roots down. If you won’t be staying long, or your plans are uncertain, renting is probably the better option. Although this type of flexibility comes with a price. If you aren’t a homeowner, it can be harder to feel established in a neighborhood. One of the reasons we love being Montrose Realtors, and selling houses is watching people put their roots down. When you buy real estate in Western Colorado you don’t just own a house. You can make that house your ‘home.’ You have the option to paint your kitchen, or put in a rose garden without having to ask permission. When you own a house you can put your roots down, and make it a place you love coming ‘home’ to.
Built-In Savings Account
When you buy real estate on the Western Slope of Colorado you enroll in a forced savings plan. It may sound weird, but it’s true. No matter what your budget it, you find the money to make your monthly mortgage payment. This may be difficult sometimes, but in the long-run, this payment is more than worth it. Month by month you pay down your mortgage, and when you do so, you are increasing your equity (the amount of money you can sell the house for minus what you still owe on it)! When you look at the bigger picture, over time, home ownership helps you build wealth. When you find the home you love, making your mortgage payment isn’t so bad, because you know it’s going towards something you can love and call yours. Being Montrose real estate agents, our passion is the find people not just a place to live, but a place that they’ll love to call home.
Big Tax Advantages
Buying a home has some serious tax advantages. When you decide to buy a home, your Montrose real estate agents here at Keller Williams will be there to support you, and we won’t be the only ones! You can also count on Uncle Sam’s support. The tax benefits of buying a home compared to renting are significant, maybe even reason enough to invest. Did you know that homeowners can deduct mortgage interest on their federal income taxes? Well, it’s true, and a lot of the time this is a huge deduction because interest payments are often the largest part of a mortgage payment in the early years of homeownership. Another tax benefit when you buy a home is that you are able to deduct some closing fees, and your property taxes. Come tax season, you’ll be even happier to be a homeowner.
A More Stabilized Budget
Anyone who has rented a home before knows that changes in rent prices are the norm, and are out of your control. They aren’t good changes either, your rent gets more and more expensive as inflation continues to happen. When you rent a home, landlords have all the control and can change your rent payment as he or she chooses. When you buy a home, you can count on your mortgage payment to stay the same. When you have a fixed rate mortgage, your payment stays the same for life of your loan, whether it’s 15 or 30 years. When you own a home you can plan your budget out better, because you know your house payment amount will never change.
Costs Less Than Renting
When you look at it long-term, buying a home is the cheaper alternative. While your mortgage payment may initially be more than you’d pay in rent, depending on the market and where you live, you’ll spend less over the life of the loan if you buy. Plus, look at it this way, when you buy your payment is going towards something you will eventually own, and not have a payment on anymore. When you rent, you’re always going to have a payment. Add in the tax benefits of home ownership, and your true out of pocket costs from day one can be less than renting a home.