2020 has given us many things to think about. The decision to buy a new home is one of them. If you are thinking of giving up renting to make the move into your own home, here are a few things to think about.
A life change such as relocation, a new job, or an household addition are major reasons why people consider moving from an apartment to a home. No matter the life stage, there are pros and cons to owning.
Benefits of Owning:
- Potential tax benefits
- Building equity
- Flexibility to make home improvements
- Mortgage payments are typically stable
- Putting down roots
- Personalizing décor and landscaping
- A place to call your own
Benefits of Renting:
- Landlord handles all repairs
- Renter’s insurance can be less expensive than homeowner’s insurance
- Utility costs may be lower
- Access to apartment amenities such as pools and fitness centers
- Moving from a rental situation may be easier than selling a home
Many renters who think that they can’t afford a new home are pleasantly surprised to find that a house payment can be very comparable to their monthly rent, when considering the after tax equivalent. Initially, most of a new house payment is made up of principal, mortgage interest and real estate taxes Since these are tax deductible, the actual cost of the after-tax equivalent mortgage payment is much less than you think. The exact amount is determined by your specific tax situation.
Nearly all of us pay a monthly housing payment. Some pay a landlord, others pay a mortgage company. In both cases that payment is building equity in the place where you live. The question is, whose equity are you building? Equity for you and your family, or for your landlord? Doesn’t it make sense to explore the option of owning your own new home? CB JENI townhomes are the perfect way to get out of the apartment and start building your nest egg!