Written by: Hannah Davis
There are many excellent reasons people choose homeownership over renting. In this featured article we are going to cover what I believe to be the top five reasons to STOP renting. So let’s not waste any more time, let us dive straight into our first reason to STOP renting:
- No equity:
If you are renting, you’re throwing your money away. In reality your rent money is helping your landlord pay off his mortgage, while building up his line of equity. One of the many perks of owning a home is building equity. What is equity?
Look at equity like this:
- The appraised value of your home is $250,000
- You have paid $100,000 on your home
- The balance you still owe on your mortgage $150,000
- The appraised value $250,000 minus the balance you still owe $150,000 equals the amount of equity $100,000.
If the appraised value of your home increases so will your equity. Your line of equity can be used to make big purchases such as a second home, major home improvement projects, or your child’s education.
- No tax deductions:
A major bonus of owning a home is receiving tax deductions. Renters do not receive tax deductions. If you own a home you can deduct mortgage interest as well as your property taxes. For more detail on Income taxes after ownership, click HERE. For our other article on Income taxes after ownership, click HERE.
- Very limited ability to personalize:
Renters have very limited ability to personalize. You are limited on how many walls you can paint, what colors you can paint the walls, and if you even have the ability to paint the walls at all. When you own a home you can paint your walls bright red if you want, you can hang as many pictures as you please, you can upgrade your countertops to granite or install hardwoods throughout your home. When you own a home you can personalize it to your heart’s desire.
- Pet restrictions:
Some rental properties have strict NO PETS policies, which can limit your choices of residence. Rental properties that allow pets can still be limited by weight or breed restrictions. If your pet is allowed, your landlord has the ability to charge extra rent each month for your pet to reside in the home.
- If inflation occurs, rental rates may go up substantially:
With our ever changing economy it can be a game of chance to rent. If inflation occurs your rental rates may go up substantially. With a fixed-rate mortgage you can have peace of mind at night knowing your mortgage rate will not increase for the specified fixed-rate of your mortgage. For more details on “The hidden benefits of homeownership”, click HERE.
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About Adams Homes:
Founded in 1991, Adams Homes is known as the premier home builder and is one of the largest privately-held home building companies in the southeast. Adams Homes has built more than 40,000 new homes since 1991 and builds in seven states including new homes for sale in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee with corporate headquarters in Gulf Breeze, Florida.
Discover all Adams Homes’ communities, model homes and homes for sale on our website, www.AdamsHomes.com. We have new homes for sale perfect for the first-time buyer, move-up home buyer, who desires to upgrade to a more accommodating new home, and the empty nester who desires to downsize to a smaller home.
While you’re at our website, explore our mortgage calculator and obtain financing information.