This Article On Reasons To Own Rather Than Rent Homes In Illinois Was UPDATED And PUBLISHED On March 21st, 2020
The Tax Benefits- First Reasons To Own Rather Than Rent:
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.
The Appreciation You Gain Is Second Reasons To Own Rather Than Rent
Historically, real estate has gained long-term, stable growth.
- According to the National Association of Realtors, home sale prices have increased 5.2 percent per year from 1972 through 2014
- That’s over 30 years of growth
- If you’re looking for a good long-term investment, real estate provides that
- 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 percent
- Additionally, with the millennials, the number of households is expected to rise 10 to 15 percent over the next ten years
This will create continued demand for housing.
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
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.
Lower Monthly Payments Over Time
Unlike rent, with a fixed-rate mortgage payments don’t rise over the years.
- So your payments may actually decline over time
- Whereas investors that own rental properties increase monthly rents on average of 5 percent per year
Keep in mind property taxes and insurance costs will likely increase but the monthly mortgage payment will stay the same, unlike monthly rent from year to year.
Freedom and Stability Is Fifth Reasons To Own Rather Than Rent
The home is yours to decorate however you like and add upgrades, additions, or any other changes.
- You can also make alterations as your lifestyle, preferences, or needs, such as a growing family, change without having to request permission (unless it’s work that requires a permit)
- 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
Now you have to house hunt, pay moving costs, and deal with the hassle.
About The Author
Julie Hayward, the broker/owner of Edge Realty, is the author of this article Reasons To Own Rather Than Rent.
- Julie Hayward is a veteran real estate agent who represents home buyers and home sellers in Chicago and its surrounding suburbs
- Julie represents home buyers and home sellers in Cook County, Lake County, Kane County, DuPage County, McHenry County, and Lake County
- Julie Hayward is a senior writer for Gustan Cho Associates Mortgage Information Center
- Julie is an expert when it comes to real estate home values in the Chicagoland area
- She diligently keeps an eye on what sells and checks the MLS daily hot sheets so she is one of the first realtors who knows what comes out on the market each and every day
Julie Hayward is available 7 days a week, evenings, weekends, holidays for all of her home buyers and home sellers and can be reached at firstname.lastname@example.org. Julie’s cell number is 312-504-9228.