Saturday, July 20, 2013

Buying A Home vs Renting A Home In St. Louis,MO.

Buying A Home vs Renting A Home
When it comes to the debate of owning or renting, certainly some pros and cons can be argued for each. Some people rent because they do not think that they can afford a home, but they have never really tried. Owning a home can be more affordable than people think. Our experienced Realtors can help you find homes in all price ranges. That house that you thought you could not afford, let us help you find it for you. Visit us at for more information about how we can help you. We love our clients and we love St. Louis, give us a visit so that we can help you today!
Is it better to rent or to own your home? For many, owning their own home is the way to go. There are many reason why owning a home has more advantages over renting a home. People often think that cost is the only issue. Cost is an issue, but it is not the only issue. Keep reading for our list of reasons why it is better to own your home vs. simply renting your home.
It is Cheaper to Own a House rather than Rent a House Owing a home can be scary, you end up paying a lot upfront, as opposed to renting, but when you own a home, it can be cheaper than renting a home. Many people are surprised to find that out, but it is true.
According to the Winter 2013 Rent vs. Buy report by Trulia, homeowners who buy their house save 44% over people who rent. You might think that these numbers were from less than desirable cities but in fact, the report found that that statistic was true for the top 100 metro areas in the United States.
Part of this is due to increasing rents, while mortgage rates are falling. Yes, with houses, you have your mortgage, property taxes, and maintenance, but if you are planning on living in the house for a long time, in the long run, you will be saving money by owning that house instead of renting.
Buying a House Builds Equityrental,
When you rent a house, you pay rent and in the end, you have nothing to show for it. Owning a house allows you to build up equity. Initially, your mortgage payments will often be applied mostly towards the interest. After some time, a bigger portion of your mortgage payments will go to your principal, which is your mortgage balance, as opposed to your interest. With each payment, you are building up equity, which is your share of the home that you have paid for. Equity is money in the bank, it increases your wealth and as your continue to pay the mortgage payments, your equity builds.
Freedom from Lease Restrictions and the Ability to Decorate When you rent, you are often restricted by a lease, which means that you have to follow the rules to continue to rent. Rental leases commonly have restrictions on guests, pets, and even children. When you own your own home, you have the freedom that comes with not having to follow a set of rules as mandated by a lease. Additionally, you are free to decorate and make changes to the house and/or the property as a homeowner. As a renter, what you see is what you get and any changes must be approved by the landlord. When you own your home, you can remodel, redecorate, and landscape however you want to. You have absolute freedom to customize your home when you own it. Renting give you no such freedom.
Owning a Home is a Tax Advantage
Owning a home is a significant tax advantage because you can deduct property taxes and mortgage interest from your federal income taxes. Some states allow you to deduct these as well. A large portion of your payments from the first few years of your mortgage typically goes to your mortgage interest. This means that you get a bigger tax advantage during the first few years of your mortgage since so much of your payment is for the interest only.
Your Credit Rating Improves
Rental payments do not affect your credit. When you have a mortgage and you make your monthly payments on a regular basis and on time, your credit score will improve. Owning a house will help your credit improve.
Pride in your Community
When you own your home, you have a vested interest in the neighborhood. You want to be involved in the community to ensure that your neighborhood is safe. It is easier to care about the safety and well-being of your community when you own a house because you know that you are a member of the community and not just a temporary member. Owning a house gives you a sense of community.
Stable Place to Live
Owning a house means that you will own that house until you decide to sell it, providing that you make the payments, of course. You do not have the stress that comes with finding out that your lease is suddenly up and will not be renewed, forcing you to move on short notice.
Owning a home means that you have a stable place for your family.
You know what your mortgage payments are and you do not have to deal with continued rent increases like many home renters have to contend with. Your family does not just have a house; they have a home when you buy vs. rent. You are giving your family security and peace of mind that they will have a roof over their heads for years and years to come. Owning a home has far more advantages than renting a home.
Not only is there a financial advantage, but there are other advantages as well. In today’s market, owning a home is hugely advantageous. To discuss these reasons more in depth, contact a member of the Helderle team today! Our job is to make your journey towards buying a home as easy as possible. From finding the best schools, to finding that perfect backyard, we can help. Visit us as today.
The Helderle Team 2013 © All Rights Reserved

No comments: