19 Feb Why Buying Property is Better than Renting Long-term
One of the biggest financial decisions we make is choosing between renting a property or buying. There’s a lot to take into consideration before you make a final decision, but at the end of the day, owning a property is one of the best financial investments you can make.
Our experienced team of mortgage brokers at John Antle’s Mortgages have compared the pros and cons of buying versus renting. If you’re putting down roots, then buying a property is in your best interest.
Rising Rent Prices in Kelowna
There are a number of reasons people choose to rent. If you’re not planning to stay in one place for long, then renting is a better option for your current circumstances. However, if you’ve decided to put down roots, then buying will offer you the greatest advantageous.
Since rent control is incredible rare, you’re bound to be faced with rising rent prices at the discretion of your landlord. Plus, when you rent, your entire rent payment goes to the landlord and while it provides you comfort in the short-term, it provides absolutely no long-term financial security, benefits or rights.
Essentially renting is beneficial for the short term, but buying is a far cheaper option over time. Even if your mortgage payments are more expensive than your previous rent, you’ll ultimately spend less on housing in your lifetime if you buy.
Fixed Mortgage and Mortgage Payments
There are several mortgage options, but one of the best options for ensuring you stay on track and maintaining financial security is a fixed mortgage.
Buying a home on a fixed rate mortgage means your house payment will stay the same for the life of the loan, whether it’s 15 or 30 years. This ensures financial stability that can’t be matched by rising rental prices.
Long-term Financial Security
Owning a home is one of the greatest investments you can make in terms of your long-term financial security. The bottom line – owning a home builds wealth while providing for all your basic needs now and well into retirement age.
Buying a home ensures you always have valuable assets. Your monthly mortgage payments are an investment in your future. Plus as the value of your property increases, so does your equity.
Tax Benefits for Homeowners
Homeowners benefit from tax deductions based on mortgage interest and property taxes when they file tax returns each year.
This is a notable deduction for most homeowners since interest payments are often the largest sum of money during the first few years of mortgage payment. It’s also possible to deduct some closing fees and your property taxes.
The advantages of tax benefits for homeowners may be reason enough to invest.