Owning your own home can be intimidating for some. You may worry what will happen if you become ill and cannot make a mortgage payment, or what if a Category 5 hurricane blows through and you have a large insurance claim to make. But the truth is all of these negative things can also happen when you are renting your home too. And then where would you be?
If you got sick for a month when owning your residence, the bank may accept a late payment, or even put one to the back of your payment book and let you skip it. If you are renting and cannot make the payment, you are given seven days to vacate the premises. Large insurance claims are not a good thing, as they mean you have suffered a loss and can make your premiums rise. But in the end you have your home to go back to, and the equity it provides.
Have you stopped to think, though, about the good things home ownership can mean?
Rent is normally more expensive than a mortgage. It’s unfair and awful, yes, but it is the truth. A condo that has a 500 dollar mortgage payment will often have a rent of 800 or 900 dollars a month. And keep in mind those rent payments are never-ending. Your mortgage will eventually be paid off.
The tax deductions are a big bonus that renters never receive. You get deductions for interest paid on the mortgage and for property taxes. If you go to sell the home, the IRS will not apply a tax for up to 250 thousand dollars of the profits you make. This number is doubled if you are married.
All those little things that your landlord has control over when you rent are your decision if you own. You won’t have to ask if you want to hang a heavy bathroom mirror, fence in the yard to get a dog, or build an outbuilding. There won’t be any ‘no trucks allowed’ rule or ‘no pets’ rule.
Many people who rent an apartment vs a condo or house have to use a laundry room with a coin-operated laundry room. You always have to have a big stash of quarters around, the laundry is only open certain hours of the day, you cannot leave a load to wash while you go run another errand, and so on. In your own house, this is never a problem. You always have washer and dryer hookups, and it’s open 24/7.
As you can see, there are a lot of pros to home ownership. Happy house-hunting!