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To Rent Or Buy Your Next Home?
The decision to rent or buy your next home is a much debated topic for 2019 because there are pros and cons to each. Some people may believe that renting is a better idea because of rising mortgage interest rates and the quick process to rent.
While this topic is debated by many, if you are looking for the best investment of your money buying a home is definitely the best option. When renting a home you are giving a company or another person all of your money each month and in the end, you have nothing to show for it.
When you buy a home you are putting your money towards the home and when you go to sell a home you are basically getting your investment back. There are endless benefits to buying a home rather than renting.
While the stock markets always fluctuate up and down and can cause you to earn or lose a lot of money at once, owning a home is one of the best investments you could ever make. When the stock market crashes the real estate market generally stays strong.
This is because people will always need a place to live. While there are small fluctuations in the housing market, depending on where you live, you can typically expect at least a five percent increase in your home each year.
Buying in a Different Country
Buying real estate outside of the US has become more and more popular for people as a retirement tool that doubles as a vacation property. Many real estate investors will rent out the property as a vacation rental or use short term rental options such as AirBnB. Needless to say that each county has their own rules and policies for real estate transactions.
Here is some information on buying a home in Mexico for example:
While there are expected increases in home values you can significantly increase the value of your home and increase your profits if you choose to make renovations to your home while you own it. Making small investments while you own the home to redo certain aspects of your home like a new kitchen or bathroom can significantly increase your long term profits.
One of the main reasons flipping shows have become so popular is because of the benefits of owning a home. If you are unsure about investing in a home you can talk to a mortgage counselor or a Realtor about the home buying process.
If you have ever rented a home before, you know there can be rules (often strict) about what you can and cannot do to the rental. If you own your own home you are free to do what you want to your home when you want to do it.
You can change the paint, redo the floors, make as much noise as you want, and can move in or out whenever you decide. You are not at the mercy of a landlord who tells you what to do and when to do it. Owning your own home gives you the freedom to do as you wish.
If you are tired of owing the government money during the tax season you can take advantage of the numerous tax benefits that come with owning a home. The government rewards people for owning a home and allows you to use your property taxes and interest paid on your mortgage to your advantage. While there are limitations to these tax benefits most people do not have to worry about the limits that are set for the average person.
Fixed Housing Rate
When you rent a home you must constantly worry that the cost of your home can go up after a year, or after your lease runs out. Your landlord could change your rent at the end of your lease with little warning. This can cause you to not be able to afford your rent and may result in you having to move.
Owning your own home guarantees you fixed housing costs (as long as you stay away from ARMS). While the price you pay may vary slightly based on property taxes you can expect the rate to stay pretty consistent.
This helps give you peace of mind and increases your financial stability. Not only are you guaranteed a fixed housing rate, but you are also guaranteed the option to move when you want since you are your own landlord.