The prospect of transitioning from tenant to homeowner can be intimidating. Buyers will take on a number of new expenses upon taking ownership of their homes. Surprisingly, however, they’ll also a gain a number of short and long-term financial benefits that could lead to far greater levels of stability and financial health.
Build Equity Each and Every Month
Equity can be built in a number of ways. Foremost among these, however, is by simply making timely mortgage payments. Each time you pay down the principal balance on your home mortgage loan, your equity will increase. This is money that you can borrow against in the future should you ever have a major and unexpected expense. You’ll also be building equity each time you invest in a new home improvement.
Get More for Your Money
In many areas, rising rental costs mean that people are paying just as much to rent homes as they would for a monthly home mortgage payment on a house for sale in Irvine, if not more. When considering the total amount paid for a property rental over the course of a year, the idea of taking on a mortgage payment often becomes very appealing. Rent monies provide no long-term returns while mortgage payments help people build wealth and open the door to a number of significant tax deductions.
There are a number of expenses that you can write off as the result of purchasing an Irvine, CA, home for sale. Each year, you can deduct the amount of interest that you pay on your home mortgage loan as well as a portion or all of your private mortgage insurance (PMI) premiums. During the tax year in which your home is purchased, you can also claim deductions for any points or interest that you pay at the time of closing.
Hedge Against Inflation
Rental costs are guaranteed to go up over the next twenty to thirty years. If you get a fixed rate mortgage, however, you’re mortgage payments are certain to remain the same. Buying a home with a fixed rate mortgage is therefore, one of the best ways to hedge against inflation and keep your overall living costs under control.
If you’ve been thinking of transitioning from renter to homeowner, let Irvine Residential help. Check out our inventory online or give us a call at (714) 454-6304 to schedule an appointment.