5 Reasons To Own A Home Versus Renting In Chicago Illinois

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This BLOG On 5 Reasons To Own A Home Versus Renting In Chicago Illinois Was UPDATED On October 17th, 2018

What are 5 reasons for owning a home and renting in Chicago, Illinois

When you’re considering whether you’re ready to make the investment of a home purchase, you have to take into account many things:

  • Especially 5 Reasons To Own A Home Versus Renting
  • Sometimes, home buyers are tempted to continue renting rather than make a purchase
  • If you’re in this camp, then this section is especially for you

In this article, we will discuss and cover the top 5 Reasons To Own A Home Versus Renting In Chicago Illinois.

Investing Your Monthly Housing Payments Versus Renting

Here Are Some Of The 5 Reasons To Own A Home Versus Renting :

Reason #1: Tax benefits:

  • The tax code lets you deduct interest paid on the mortgage, property taxes, and some costs involved when purchasing a home
  • When you rent, you miss out on those deductions

Second Of The Reasons To Own A Home Versus Renting

Reason #2:

  • Your investment appreciates
  • Historically, real estate has gained long-term, stable growth
  • According to the National Association of Realtors, home sale prices have increased 5.2% per year from 1972 through 2017
  • That’s over 30 years of growth
  • If you’re looking for a good long-term investment, real estate provides it
  • The housing crisis created concern regarding the long-term value of the real estate
  • But even in the last decade, overall values still increased by 7.0%
  • Additionally, with the coming-of-age of millennials, the number of households is expected to rise 10 to 15% over the next ten years
  • This increase will create continued demand for housing

Building Equity Versus Expensing Housing Payments

What is the difference between building equity and housing expenses

Reason #3: Build equity:

  • Mortgage payments let you build equity
  • The payments you make go towards building equity
  • When you pay rent, you help someone else build equity
  • Think of it as a built-in savings plan
  • And, when you sell, you can take up to $250,000 for an individual and $500,000 for a married couple as a gain without paying income tax on it

Fixed Monthly Payments As Homeowners Versus Rents Increasing 

Reason #4: Lower monthly payments over time:

  • Rent payments go up. With a fixed-rate mortgage, payments don’t rise over the years
  • So your payments may actually decline over time when you consider them as a percentage of rising income
  • Investors that own rental properties often increase monthly rents, on average, 5% per year
  • Keep in mind that property taxes and insurance costs will likely increase but that the monthly mortgage payment will stay the same
  • That’s a clear advantage

Stability And Freedom As Homeowners Versus Landlord Asking Renters To Leave

Reason #5: Ownership provides freedom and stability:

  • It can be so liberating and satisfying to own your home
  • The home is yours to decorate
  • However you like and you may add upgrades, additions, or make other changes
  • You can also make alterations as your lifestyle, preferences, or needs
  • Examples include such as a growing family, change—without having to request permission (unless it’s work that requires a permit, of course)
  • Remaining in the same area for several years also provides social benefits, such as building long-lasting relationships with neighbors and others in the community
  • If you have kids, they also gain the benefit of that educational and social continuity
  • Plus, you don’t have to worry that your landlord may decide to sell and not renew your lease
  • If that happens, you have to house-hunt, pay moving costs, and deal with the hassle
  • Your next home may not be as close to work, school, shopping, etc.
  • Owning a home provides that stability

About The Author Of Reasons To Own A Home Versus Renting

What is the difference between owning a house and renting it

Julie Hayward,  author of this ARTICLE on 5 Reasons To Own A Home Versus Renting, is a contributing writer for Gustan Cho Associates. Julie is also the President and CEO of Chicago based EDGE REALTY LLC. Julie Hayward is one of the top-producing real estate agents in Illinois and six surrounding counties of:

  • Cook County
  • Lake County
  • Will County
  • Du Page County
  • Mc Henry County
  • Kane County

Gustan Cho Associates is grateful to have such talent as Julie Hayward and her Associates as part of Gustan Cho Associates Mortgage Group. Looking forward to upcoming articles by Julie and her team of real estate professionals.

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