The only one who benefits financially from a rent check is the landlord. Renters never see their monthly payments again, and they can’t use any of that money as a tax deduction. Home buyers, on the other hand, spend part of their monthly payments buying an asset they can eventually sell. The remainder of their monthly outlay pays interest to their lender, which is fully tax deductible in most cases. If you are currently renting or you’re moving and debating whether to rent or buy, take a look at how your housing payment could be put to better use purchasing a home. The real question may be whether you can afford not to buy your own home in Ingleburn.
As a renter, you may be subject to a rent increase each time your lease period expires. You can end up paying more and more every year for a place to live-with no limit and no financial return in sight. Homeowners who take out a fixed-rate mortgage, however, can look forward to the same monthly principal and interest (PI) payment as long as they own their home. Even with an adjustable-rate mortgage, payments could increase if interest rates rise, but the increases would be “capped” to a maximum amount for each adjustment and over the life of the loan.
Benefits of owning a home
The benefits of owning a home can vary just as costs do, depending on the type of loan you select, current interest rates, your tax bracket, local property appreciation rates and, again, how long you retain ownership of the home. But those are just the financial considerations. Homeowners experience many less tangible but very real benefits compared with renters – more freedom of lifestyle, pride of ownership, a greater sense
of stability and security, closer neighborhood friendships and more community involvement, just to name a few.
While holding housing costs constant, most homeowners can also take an annual tax deduction for mortgage-interest expenses. The tax savings alone make the purchase of a home a wise financial decision for most people.
Real Estate Professionals
As real estate professionals, we can supply you with all the local market data and up-to-date information you’ll need to make a sound decision about buying versus renting. We can help you determine how much home you can afford and what type of loan would best meet your needs. We’ll also be happy to show you available properties in Ingleburn that match your references and budget, or we can keep a sharp lookout for your perfect home if you are not quite ready to buy now. In addition, it’s always a good idea to consult a financial planner or tax professional when making a major investment decision which buying a home certainly is! They can help you analyze all the data that applies to your particular situation so you can determine whether investing in a home makes as much financial sense to you as it does to the thousands of other landlords we already service.