September 1st is a BIG day in the Boston rental market. Everyone is moving out and in and the streets are crowded with moving trucks. If you resigned you lease and you are going to be paying rent on the same unit for another year, you might be thinking to yourself right now that maybe it's time to actually buy something. What is the advantage to owning your own home? Of course there are many of them, but some to bare in mind from an article on Realty Times are:
1. It might be more upfront, but it will save you money. Long-term home ownership can save you a lot of money in the scope of your life.
2. Budgeting. What we have seen a lot of this season in Boston, is rent increase from year to year. If you want to be sure that you are spending the same amount on housing for an extended period of time, one good way is a fixed-rate mortgage!
3. It's yours! The security and freedom that associated with owing your own property means that your get to paint, remodel, improve and reap the benefits yourself for as long as you would like. Additionally, "Most homeowners are in neighborhoods with other homeowners, meaning more time to build relationships and friendships. Recent studies have also shown that homeowners rank themselves as healthier than their renter counterparts."
4. "Tax Breaks: They're not on the chopping block just yet. Many homeowners are still able to take the mortgage interest deduction (MID) each year, along with great rebates and credits associated with upgrades made to your home.
5. Equity: When you pay a landlord, it's money down the drain. When you pay on a mortgage, you are paying towards owning a piece of something. You may still owe $100,000, but perhaps the home is worth $200,000. This means you have $100,000 worth of equity you've built up over time." (Source).
Buying homes is more doable now than it has been in recent times. Prices and interest rates are low, and sellers are desperate to sell. If you are thinking about it, you can use this interactive calculator to see if it makes sense for you.