3 REASONS WHY YOU SHOULD BUY INSTEAD OF RENT IN 2019
Is 2019 finally the year you’re ready to pull the trigger and own property? With the market predictions, we’re confident that now is the time to do so, to avoid the skyrocketing interest rates ahead in the new year.
MORTGAGE RATES ARE STILL LOW. RENT PRICES CONTINUE TO RISE
Have you noticed how much rent has gone up in the Triangle market? For a 2-bedroom apartment, you can be spending upwards of $3000/month - and with what to show for? If you have 20% (or even 10%) to put down on a new home, now is the time to consider buying. You’ll find that interest rates are still very low, and if you can avoid PMI insurance, your mortgage will likely be less than your monthly rate. Be sure to move quickly in 2019, though, as rate increases are on the horizon and you’ll want to lock down a fixed-rate mortgage if you plan to own the home for 5+ years.
REAP THE TAX BENEFITS
Tax season will be here before you know it. Did you know that if you’re a homeowner, you can deduct your mortgage interest and property taxes on your tax return? Also, another benefit to homeowners is the fact that they do not have to pay taxes on the imputed rental income. Imputed rental income is essentially the return on home ownership (since you aren’t actually paying rent). Instead, you are seen as both landlord and renter without being taxed as a landlord.
IT ACTUALLY SAVES MONEY IN THE END
Once you get past the initial shock of putting a down payment on a home, you’ll soon realize that you are on your way to saving money. According to David Bach, Co-Founder of AE Wealth Management, as a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Alternatively, you could spend that same amount on paying off your mortgage and eventually being able to own your own property, which you could then sell. Real estate is all about the long game, and if you’re patient, you will absolutely get your return on investment.