5 Reasons to Buy a House Instead of Renting
Purchasing your first home, condo, or townhouse is often a mix of emotions. The excitement of investing in yourself mixed with the overwhelm of making the largest purchase of your life. Yes, it’s a major purchase but you’ll be paying for housing each month anyway. As a buyer, your money goes towards your dream home, not towards strengthening someone else’s financial security. There are countless pros and cons to consider. Let’s begin by exploring the top 5 reasons to buy a house instead of renting.
1 Achieving the American Dream
Purchasing a home is often part of a series of personal goals and life milestones. Whether you are single, married, have started your family, are about to start a family, or you prefer pets to kids owning your own place is a foundational element of achieving the American Dream.
It’s not about status, but about working hard and investing in yourself. The first home you purchase may not be the home you live in long-term but is foundational in building your wealth.
By paying a monthly mortgage you secure your financial future, instead of your landlord’s financial future. It takes time and requires maintenance and upkeep, but your home will become a key part of your investment and retirement portfolio.
2 There’s No Place Like Home
Your rental unit may be great, but does it feel like your forever home? Is it large enough to entertain for the holidays? Do you take pride in inviting others over?
When you purchase a home, you are likely to be more specific about what will make you happy and comfortable. In a rental, your commitment is year-to-year, so you aren’t as invested. Your landlord’s commitment is also year-to-year. They could sell at any time, leaving you looking for a new place at the end of your lease—or sooner if the buyer doesn’t want tenants.
Before you begin browsing Las Vegas listings, make a list of your “must-haves” and your “nice to haves”. Must-have items are non-negotiables such as the design aesthetic, number of bedrooms, bathrooms, kitchen size, and key amenities such as outdoor living spaces. Nice to have items might include the size of your garage, whether you have bonus space such as an attic or basement, or amenities such as an outdoor kitchen. Even if it’s a small condo or starter home, it’s all yours!
3 Your Home Your Way
The ability to make your house (or condo) a home is one of the top reasons to buy a house instead of renting. As a renter, you are limited to how you can personalize the property. From things as small as remodeling the closet to significant investments such as building a deck or adding a swimming pool.
Even if you can make a few changes, maybe upgrading the landscaping, it’s an investment in someone else’s property. When you purchase a home, you can personalize it any way you like.
In fact, you are more likely to consider customizations you wouldn’t have as a renter. From window treatments to energy efficiency, a more elaborate home office, and minor or major design and remodeling projects.
4 Appreciation, Equity, and Tax Benefits
The Las Vegas real estate market is on a steady upwards trend. This means that your home is likely to appreciate several percentage points each year. As long as the trend stays on track, your home will soon be worth substantially more than what you purchased it for. For maximum appreciation, take a strategic approach to maintenance, repairs, and upgrades.
Between natural appreciation and your monthly mortgage payments, the more equity you will have in your home. Equity is the difference between what you owe on your mortgage and your home’s current market value. If you can pay more than your minimum each month ensure the extra is applied to your principal balance. Just one extra mortgage payment per year applied to your principle can pay your mortgage off several years faster.
Finally, there are a variety of tax benefits that are sound reasons to buy a house instead of renting. Tax laws change from one year to the next, so be sure to work with an accountant.
Tax benefits may include:
- First-time buyer tax benefits.
- Mortgage interest credits and deductions.
- Mortgage insurance deduction.
- Property tax deduction.
- Energy efficiency tax credit.
- Home office expansion deduction.
- Deduction of medically necessary home improvements.
- And more!
When you are ready to sell, you will also enjoy a capital gain exclusion. This means that if your home sells for more than your purchase price, you aren’t taxed on your capital gains.
5 No Landlord is One of the Top Reasons to Buy a House Instead of Renting
As a renter, you are protected by landlord/tenant laws, but that’s not to say that your landlord is a dream. Even if your landlord is responsive and professional, there is a downside to having
someone else makes the decisions for your property.
For example, when a repair request is submitted to your landlord, it’s their prerogative on how to handle the repair. Let’s say your refrigerator breaks. Your landlord may replace it with the cheapest option, not the fridge you would invest in if it were your home.
While notice is required, landlords can stop by or schedule ongoing maintenance and repairs when it works for them. When you own your own home, you can schedule work as it’s convenient for you. You can also be selective about who you hire and the quality of their supplies and craftsmanship.
Ready to Invest in Yourself?
If you are ready to invest in yourself and transition from renter to buyer, I invite you to reach out to add a business name today. Currently, homes in our local market sell in 34 days or less.
Many in as few as 2 weeks! This means we must take a strategic approach to find your dream home and act fast with our offer and negotiations. I’ll be by your side, guiding you every step of the way. If you aren’t ready to buy for yourself, we can discuss real estate investment options. Let’s get started!
