Have you been noticing the signs in the property business that are telling you to buy the first house you been dreaming of for many years? Or if you are someone who can’t seem to make up the mind on the question of going for a rental property versus the down payment or paying the price of the house you want to own? If yes, this article will help to resolve your dilemma in a manner, which would guide your final decision and thought process.
If one looks at the property market trends, it becomes clear that the constant increase in the rent suggests that one should go for buying the house rather than going through the hassle and trouble of having to pay the unbelievable amount of rent without any security. However, if you don’t know the ground realities or if you are familiar with the mostly overlooked market dynamics, you may end up buying or choosing the wrong house or option for you.
Buying is Becoming Easier
According to the property experts, the option of buying has become attractive than the rental property due to the role of rates in the market. This means that the more the rates increase; it could decrease the buying power of the clients. However, the very possibility of the rates to surpass the buying option or to make it seem less feasible would require the extraordinary increase. Therefore, the option of buying a house will gain popularity in the coming year.
Significance of the Metro Areas
This may sound hard to believe, but research shows that buying a house is not only cheap in a small area, but buying the property in the metro areas like Houston, Miami is easier than the option of utilizing a rental property. As the cost saving is more than fifty percent in the above-mentioned or unexpected areas. It means that if you always wanted to buy a home in the metro area or cities, now is the right time.
Unstable Rental Prices
Interestingly, the rents seem to increase at a relatively less speed than the price or cost of a real estate, however, the increase in rent may be triggered by the uncertain changes and factors in the financial markets in the upcoming year. For instance, the change in government is one of the factors that could alter the property prices by introducing new taxes, while the option of buying property is more secure or certain in terms of safeguarding you from the unexpected changes. For example, if you are done with the agreement stage of buying a property, you won’t have to pay additional money except for the fixed amount in the agreement. And the taxes are applicable in the case of a changeable rate mortgage, but if you have chosen the fixed-rate of the mortgagee, it won’t disturb your agreement.
Role of Equity
If you are an owner of the home and you are able to maximize equity with the time, it means that you would be able to safeguard your investment from the fluctuations or changes in the property market. Although home equity is not a substituent of savings, however, it can be ultimately turned into one if you follow the steps correctly, especially if you are someone who is not good at managing the savings, while the monthly rent directly benefits the landlord than the tenant. Therefore, many real estate investors believe that the payment of a home mortgage can help you to save money and it can be used to invest in other projects or to turn it into a lifelong asset for you. Furthermore, some of the investors also use the home equity to invest in the Multifamily Leasing Technology.
Tax Deductions
You may not be familiar with this advantage, but it is probably one of the most helpful merit that is available for the homeowners. Even though the mortgage requires the interested homeowners to pay plenty of interests, however, if it is done in a right manner, it can offer you many tax deductions. For example, the tax on the property could be decreased as the private mortgage insurance is. Similarly, if you are someone who has spent two years in the past five years time and you decide to sell the home after it, the price you earn from selling the house won’t be subjected to any tax.
Inflation is Good for the Value of your Home
The historical records of the inflation have shown that the rise of inflation contributes in increasing the price or value of your home. In simple words, if you are an owner of a house or property, you may benefit from the inflation rather than being a renter of the landlord.
Buying is better for Long-term Goals
If you are someone who prefers a stable life over shifting or having to change the rental place after every few years, the option of buying would help you to live permanently in one place for a longer time in addition to providing you the profit as well if you decide to sell it afterward.
Rental Income
If you are an owner of a house and if you are looking to start a new business, the option of turning your home into a rental property may solve your problems to a large extent. However, if you don’t want to rent out the complete house, a part or portion of the house can be rented to get you the profit.
Mortgage Ends
If one assesses the pro and cons of the homeownership versus the rental property, it becomes clear that the rent is a never-ending trouble that one will have to go through even if it seems convenient for the short-term, but if you spend the money on the mortgage that may give you a hard time in the beginning due to the nature of the timeline to meet your due amount deadlines, however, if you manage to get through the tough stage, things become easy in the long-term in form of taking you closer to the end of the mortgage.
Teresa Best 