Owning a home is the American Dream and if you’re still shelling out 30% of your income to a landlord, it’s time to consider the harsh reality of how much money you’re throwing away month after month. A $1,000 monthly rental equals $12,000 you’ve paid over the course of a year -for absolutely nothing. It’s time to consider buying a home and make your money count.
Here’s a look at 10 of the biggest reasons it is time to can the landlord and earn the title of ‘owner.’
Paying a landlord rent is essentially making the landlord rich but doing little for your own financial situation. Once you buy a home, each mortgage payment that you make builds equity or the difference between the homes value and the money owed. The more equity you build, the more profit you turn if the home is sold later down the road.
It is less expensive to buy a home than to rent a home in 39 of the 50 states, including South Carolina, according to a recent GOBankingRates survey. Why fork out all that money for a rental payment when you can build equity as you build your way to home ownership when you choose to buy a home?
Some people are lucky and meet fantastic landlords who make their life a pleasure. Sadly, more people find the relationship with their landlord tumultuous at best. Unexpected visits, unprofessionalism, lack of maintenance, and many other issues can cause hostility between a tenant and a landlord. It is not always easy to deal with a landlord who just won’t listen or who seems to enjoy aggravating you. Buying a home eliminates that worry once and for all.
The 20%-down rule is now old and outdated. Sure, you’ll need some cash to use for the down-payment on the home but can relax if you’ve not saved up that whopping 20% figure. Many loan options allow a down-payment of 10% or less. The FHA loan, for example, offers homebuyers opportunity to put down as little as 3.5% to become a homeowner! Fannie Mae also offers a loan program with a small 3% down payment.
Rental rates rise an average of 3.9% every year. That’s nearly $400 for a $1,000/monthly rental! The Fixed-Rate mortgage option keeps your monthly mortgage rate locked in for many years, giving you comfort that rent increases won’t force you to abandon ship and find a new place to call home.
Sure, the landlord might be nice enough to return your deposit when you move out, but don’t count on that happening. In hindsight, getting a deposit back that you paid to move into a home really isn’t getting a break, so ultimately, you’re making the landlord rich while you suffer. When the decision to buy is made, you’ll instantly gain a plethora of exciting tax breaks that considerably reduce the money you’ll pay Uncle Sam when tax season rolls around.
The landlord owns the home that you’re renting, thus controls almost every aspect of the interior and exterior. If you wish to paint the walls or make other changes, you may do so only after approval from the landlord. If the landlord doesn’t approve those changes, you are out of luck and must deal with the home in its current condition. As a homeowner, your home is your haven and personal canvas to create and structure the perfect environment for your needs and desires. You can add a fireplace, a new deck, or even paint the walls whenever you wish, with no prior permission needed.
Renting a home may come with a plethora of restrictions that you must adhere to or risk being thrown out of your property! Many landlords restrict pets without a deposit, some don’t allow guests to stay over, and there are even restrictions concerning the type of business that you can conduct on the property. Many landlords can even make you move when the end of the lease term rolls around. Why deal with such restrictions when you can enjoy freedom as a homeowner?
Passing-down a rented home is impossible, even if you’ve resided at the property for 20, 30, or 40 or more years. The home remains the property of the landlord through it all. The landlord will thank you for helping them become a homeowner, but that’s about all you’ll get. When you buy a house, you can pay-off the mortgage and pass it down to the kids when you’re no longer here. Leaving this earth knowing that your children are secure is one of the best ways to spread your wings and fly high. When they’re left with a mortgage-free home, you’ve left them with an amazing gift.
So many dreams remain just that and never become a reality. Don’t live that type of story when it is easier than ever to qualify for a mortgage and make those dreams of owning a home a reality. Signing on the dotted-line of that mortgage contract is so very rewarding and feels good inside and out. You’ve accomplished a major feat and it is something that you should proudly boast and pat yourself on the back for achieving. Home ownership is the American dream and you’ve succeeded.
These 10 reasons only begin to detail the many exciting reasons that you should stop renting and buy your home. When you’re ready to experience the homebuying excitement, purchase a dream home in beautiful Hilton Head Island, South Carolina! Owning an oceanfront home is easier than you think and we’re here to help you with every step of the process. When you’re ready to buy, let us be a part of that dream!