5 Signs It’s Time To Stop Renting
While being a renter does have its advantages, there comes a point in life where you might want to consider buying a home.
Owning your own place is an investment and an important financial milestone. There’s a lot to be said for the freedom and stability it brings.
Here are five signs it’s time for you to stop renting and take the leap to homeownership.
1. You Want More Control On Your Environment
One of the biggest downsides of renting is the lack of control you have on the look and feel of your environment.
Gutting the kitchen or redoing the bathroom is completely out of the question. And even minor renovations such as repainting the walls a different color or hanging pictures can be a big no-no. In fact, most tenancy agreements come with a long list of things you’re absolutely forbidden to do.
Of course, if you’re planning to move on once your lease is up, this isn’t going to be such an issue. But once you decide it’s time to put down some roots, chances are you’ll want a space you can truly make your own.
Purchasing a home is the perfect opportunity to do so. Whether its the choice of flooring, the furniture, your bedroom’s color scheme or even the entire floor-plan, owning your own home gives you complete control over every aspect of its look and feel, down to the smallest detail.
2. You Have A Growing Family
If you’re in a stable relationship, about to get married, or expecting a child, it might be time for you to buy a home.
For one, you may simply not have enough room in your rental to accommodate your growing family. And your tenancy agreement probably severely restricts what kind of renovations you can or cannot do to maximise your floor space.
More importantly, however, renting is far less stable than owning your own home. Ideally, you’ll want to avoid having to move every so often if you have children in tow.
Which brings us to our next point:
3. You’re Interested In A Particular School District
While you can rent property and still be in your preferred school district, being a tenant leaves you and your family in a vulnerable position. Should your lease be terminated for any reason, there’s no guarantee you’ll find another rental in the same area. As a result, your kids might have to change school.
It’s much easier to purchase a home and settle down before you have these additional complications to consider.
4. You Could Do With A Tax Deduction
Home ownership also has a number of tax advantages. There are several costs you can deduct from your yearly tax bill; and the savings can be considerable. Here are some of the deductions you can make:
You can deduct many of your closing costs in the tax year during which you bought your home. Costs you can deduct include property taxes and loan processing fees. The latter are often 1% of your loan amount or even more, so deducting them can mean huge tax savings.
The interest you pay on your mortgage is also tax deductible. Interest makes up a large portion of your mortgage repayments, especially during the first few years of home ownership, so being able to make this deduction is another big saving on your tax bill.
If you have a home equity loan or line of credit, you can deduct the interest from your tax bill. This is especially great because you can shift your credit card debt to your home equity loan, pay less interest and deduct it from your taxes to boot.
5. You’d Love To Get A Pet
While finding a pet-friendly rental isn’t impossible, it’s often difficult and stressful. Indeed, difficulty finding or keeping a rental is one of the main reasons why cats and dogs end up in shelters.
Many landlords object to pets for a variety of reasons – hygiene, fear your pet will be a nuisance or liability issues, just to name a few. And even landlords that accept pets often have strict conditions. These can range from weight and breed-specific restrictions to an unreasonably high security deposit. Either way, the conditions might be such that the landlord might as well not accept pets in the first place.
But when you own your own home, no such restrictions apply. Whether you’ve been dreaming of owning a dog or a litter of kittens, being a homeowner gives you the freedom to do so; provided you have enough time, space and money to care for them properly, of course.
Current market conditions have created the perfect opportunity to transition from writing a monthly rent check to buying your own home. Here’s why purchasing a home may be the best financial decision you can make. If you’re thinking about ditching your rental and becoming a homeowner, we can help. Talk to us today!