Whether you are a recent college graduate who is looking for a place in Staten Island of his or her own, relocating due to a job change, or deciding on your forever home, the thought always crosses your mind whether you should buy a home or rent. While the economic crisis that began back in 2007 scared many homeowners and even left some unable to pay their mortgages, there are so many advantages to owning a home versus renting.
The property is yours, do what you want
One of the most popular reasons for buying a house is that once you close on it, it is officially yours to do whatever you would like. Don’t like the carpeting in the living room? Tear it out and replace it with some nice hardwood flooring! Want to paint every single room a different color? Feel free – you don’t have to ask the landlord for permission.
Each and every year when you file your tax returns, you will have an added bonus if you are a homeowner. You will be able to deduct both your mortgage interest and property taxes. The savings you gain from the tax benefits can make owning a home the same cost as renting, if not cheaper.
We all can agree that buying a home is a huge investment; no matter what stage you are in life. When your home appreciates over time, it is on the entire value of your home. Lets say you browse the Staten Island real estate market and you find the perfect home. You purchase it for $300,000 this year with $20,000 for a down payment. Five years from now, the housing market is roaring so demand is high and the supply is low allowing you to sell your home for $25,000 more than what you paid, creating a win-win situation unlike renting.
Mortgage Costs do not rise unlike Rents
Generally, your mortgage costs will not increase like rent does. If you get a 15-year fixed-rate mortgage or a 30-year fixed-rate mortgage, your payments will be the same for the entire duration of your loan. However, if you rent, each year when you go to renew your lease landlords can increase the rent. If rent increases too much over time it will result in having to move more frequently.
Where is your money going?
Each month when you go to make your mortgage payment, that money is going directly to your loan. Every year that passes, your average pay-down per month increases creating larger equity in your home. When you rent, all of your money goes to the landlord, which doesn’t benefit you in the end whatsoever. When you go to sell your home when the Staten Island Real estate housing market is at its best, the equity you’ve gained could result with a check in your hands after the remaining balance of your loan has been paid off.
Wonica Realtors & Appraisers are Staten Island’s #1 independent full-service real estate firm, serving the needs of the community for over 30 years. Whether you’re buying, selling, renting or relocating, our staff of highly trained professionals will provide quality realty services with personal attention to your individual real estate needs.