By: Alicia Caldwell, AMC Literary Services
Every renter has at least once thought, “I’d rather be paying mortgage.” While there are valid reasons that renting is the better option, it is definitely a case to case basis. There is no simple equation for making the decision to buy and stop renting. Many factors and considerations should be implemented when making the leap to buy a home, and make the shift from rent to mortgage. If, after weighing the pros and cons and hopefully talking to an expert, you feel you’re just not ready to buy, then trust your instinct and the information you’ve ascertained, and do what’s best for you.
One factor that might lean you toward the option of purchasing a home, is tax benefits. Homebuyers are privy to several benefits that renters aren’t; giving them critical deductions that can give many tax filers a lower tax bill. There are four home-related deductions that homeowners are able to claim, when itemizing:
- The interest they pay on a mortgage
- The points they pay on a mortgage
- The cost of all property taxes
- The cost of insuring their mortgage
For homeowners that filed and took these deductions, the average (in 2012, the earliest available statistics) could claim, on average, $15,871. That’s not where it ends. There are also benefits for improvements that make your home safe, energy efficient, and others, depending on your specific situations.
Knowing that there are tax benefits may not be enough to make you decide to buy. And, no authority would recommend that it be a deciding factor for you. Renting still makes sense for so many. But, doing it long term can cease to make sense after a while. Rent pays someone else’s mortgage, and when you leave, you walk away with nothing. Rent can’t be claimed on your taxes, yet it is often many renters most significant monthly and yearly payout. You may begin wondering if you should be getting something for all of that money, besides simply a place to live.
When you’re prepared to change wonder into action, Carod Properties is here to help!
