- One of the biggest decisions that anyone can make in his or her life is to purchase a home.
However, many people wonder if purchasing a home is the best option for them instead of renting. Although the years after the housing crisis of 2008-09 have shaken people’s confidence in homeownership, the benefits of owning a home are still considered a savvy financial move.
Most of the time, renting is still considered an option for families who don’t want a long-term commitment either with a community or an area; however, the main reason people opt to rent instead of buying is that their financial condition won’t allow them to buy. If you do the math based on your income and the numbers add up, buying can work in your favor financially.
According to experts like Nicholas Lara, president of Mutual Mortgage Lending Corp. a residential and commercial lending firm based in Homestead families who buy not only do so as a means of having a roof over their heads but also as a capital gain and a gigantic tax relief.
Indeed, homes typically increase in value and become a capital gain. For one, paying your mortgage every month builds equity. The property’s equity increases as payments are made against the mortgage balance and as the property value appreciates. In addition, paying a mortgage is a “forced” savings plan, which can be important when the owner pays down the balance and builds up more valuable equity in the property.
Nicholas Lara, who has vast experience in mortgage lending and acts as an investment advisor for residential and commercial real estate, advises that buying property might also be a good investment opportunity to make a fast profit through fix and flip, which is the simple concept of buying a house that needs some work, fixing it up and selling the house. “We, at Mutual Mortgage, have helped clients to make profits of around $30,000 to $70,000 in a few months with just one fix-and-flip project,” he added.
To sum up, there are a lot of financial gains if you decide to buy your own property. At the beginning, it may look cheaper to rent; however, if you consider homeownership as part of your financial concept, you will realize that your mortgage payment will decrease and that the interest you pay will eventually be lower than the rent you would have been paying.
So, instead of paying off your landlord’s property, be smart and pay your own! For more information call the number 1800.834.5005 or visit the website www.mutualmtg.com
Haz clic para leer en Español: Nicholas Lara: ¿Comprar vs. Rentar?