Despite interest rates slowly trending up recently, some people still debate whether it’s better to buy or rent a home in today’s economy. My answer is still a resounding, “Buy!” But if you’re still not convinced, let me give you six reasons why buying a home makes more sense than renting one.
1. Interest rates are still quite low. Despite a slow reversal in recent months, interest rates are still attractively low and home prices in many parts of metro Albuquerque remain soft. Unlike rent, a fixed mortgage can’t go up. If you’re locked into a 30-year fixed mortgage, you have a healthy hedge against inflation.
2. You can customize your living space. From painting walls to knocking them down and restructuring, you have the ability to make your home suit your needs and tastes. Depending on your career, you may be able to work from home in your own state-of-the-art office!
3. No landlord to evict you or procrastinate over maintenance requests. I can’t tell you how many times I’ve heard of owners suddenly deciding to sell their homes and not renewing their tenants’ leases. Or failing to take care of a maintenance issue that not only inconveniences the tenant, but becomes a much larger cost to them in the long run. Nonetheless, as a homeowner, you control your own budget.
4. You can take advantage of energy efficiency. Homeowners can consider major ways to make energy-efficient improvements and “green up” their home. Using quality insulation and energy-efficient appliances can greatly reduce your monthly utility bills. Renters, on the other hand, are limited in what they can do – perhaps only unplugging appliances or turning off lights. Still, homeowners can make bigger changes, such as adding solar panels or installing energy-efficient roofing.
5. Homeowners can take tax deductions. The main tax benefit of homeownership is the ability to deduct mortgage interest payments, but that’s not all you may be entitled to. You may also be able to deduct the aforementioned energy-efficient improvements as well.
6. Homeownership allows the opportunity to generate additional revenue. You may be able to save commercial office rent by running your business out of your home. You might rent additional space to a boarder. I’ve even heard of one homeowner who rented out small patches of grass for people who wanted to grow vegetables. Possibilities abound.
Clearly, home ownership is the way to go and has been for some time. If you’re thinking about buying or selling a home in metro Albuquerque, be sure to contact me today!
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