According to a study conducted by GOBankingRates, owning a home is cheaper than renting in 38 states across the country. Results show that in Arizona, the difference between buying & renting would account for less than a $50 monthly difference, leaving the choice up to the individual family (see below). For some renting may be appealing for flexibility, little or no maintenance, utilities being covered in one payment. These benefits are worth considering.
Benefits of Buying
This October, mortgage rates have hit a seven-year high while home prices are on the rise. Despite rising mortgage rates, NOW is still a good time to finance a mortgage with fixed monthly payments- which can be the same or lower than a rent payment.
Homeownership is a form of forced savings. If you plan to stay in a home within 6 years, buying a home could save you thousands of dollars over time. Purchasing a home provides tax savings, mortgage loan interest is deducted from State and Federal income taxes and a portion of your property taxes may also be deducted.
Homeownership allows you to lock in your monthly costs. Fixed mortgage payments will not change during the long-term whereas rent payment may increase annually. No other investment lets you live inside of it.
Owning a home long term allows equity to build and thus your home investment to grow. The latest Home Expectation Survey results show that a homebuyer who purchased a $250,000 home in January would gain $50,000 in equity in the next 5 years (see below).
Some people would argue that renting is better than owning a home because you do not need to pay taxes and maintenance/repair costs. What every renter must realize is that all expenses incurred by the landlord are already priced in the rent payment- along with the profit margin.
If you would like to discuss more in-depth about the benefits of homeownership, please CONTACT US today. We look forward to hearing from you soon. Tina & Ron Barton, Realtors | Direct: (480) 242-3079