Why Buying a New Home is Better than Renting

Why Buying a New Home is Better Than Renting

Listen up, renters. There’s no more waiting. No more “just looking.” It’s time to own your home rather than shell out thousands each year to live in a building that doesn’t belong to you. Here are four reasons why.

Personalized living spaces

Don’t like a wall color or a hanging fixture? Too bad. That is, if you rent your space. Unlike renting, where a lease usually outlines strict guidelines for altering apartment appearance, owning a home opens up possibilities for customization. The greatest example of this is buying a fixer-upper, in which a new owner purchases a low-priced home with the intention of renovating the property based on need or design interests.

However, many homebuyers–especially first-time homeowners–choose a move-in ready home because it requires the least work upfront. But after moving in, the ceiling is the limit to how you design your home, which is especially important if you’re considering growing a family, downsizing, or have a big old dog that needs someplace to sit.

Caveat: Exceptions may occur when dealing with a Homeowners Association (HOA), applicable building codes and other restrictions. For example, many times HOAs will have regulations regarding exterior and lawn appearance and how you can use your home.

More peace of mind

This isn’t to say that buying a home is a peaceful process; in fact, it can be a stressful experience. But once you become a homeowner, you enter a more certain world, one without worrying whether a landlord will raise the rent or waiting for someone to fix the dryer that’s been broken for weeks. You are in control now. If something needs repaired, you can take action right away. In fact, some new construction homes come with warranties that cover certain repairs for a set time.

Buying is (sometimes) cheaper than renting

It sounds too good to be true, but depending on your desired home price, your location, and current rent, you might pay more for a rental over a multi-year period.

For example, assuming you qualify for certain financing and interest rates, a home priced at $200,000 in the 77022 zip code becomes cheaper than paying $1,000 per month in rent in 10 years. In other words, if you’re a long-term renter, buying a house may be a better financial option over time

There are many variables to factor, though. See where you stand with this Rent Vs. Buy calculator.

According to a 2016 study surveying monthly mortgage payments in each state, the average cost in Texas is $1,271. That’s $154 less than what renters pay. Extend that trend through an entire year and the average homeowner is saving about $1,848. And while current mortgage rates are not as low as the previous year, they are still below highs recorded in 2006 and 2014, making limited cuts to comparative savings.

Tax deductions

Similar to getting married, buying a home may provide useful tax benefits in the form of deductions for mortgage interest and property tax.

To be clear, investing in a home (or getting married for that matter) for tax breaks is not a sound financial solution, especially when these methods benefit higher tax brackets over lower ones.  So think of tax benefits more akin to perks than life hacks.-

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* Perry Homes, LLC its subsidiaries, affiliates and assigns do not provide tax, legal or accounting advice. This Site has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consider consulting your own tax, legal and accounting advisors before purchasing a new home.  The Site contains links to other internet websites maintained by third parties. These links are not endorsements of any products or services contained in those sites, and no information in those sites has been endorsed or approved by Perry Homes. Accordingly, you agree that Perry Homes is not responsible for any content, product, or services provided on these other internet websites. Likewise, you agree that Perry Homes is not liable for the content, products, or services of other internet websites that link to the Site. Please see Legal disclaimer for additional terms and conditions.

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Why Buying a New Home is Better than Renting

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