How to Build Equity Instead of Wasting Money on Rent
Posted by HiLine Hal
May 26, 2015
Home ownership is empowering, especially when you buy a custom home on your lot. If you are wasting money on rent, you likely wonder whether it’s time to make the jump to home ownership. With interest rates low and low down payment programs offered by Freddie Mac and Fannie Mae, home ownership isn’t just a dream to pursue years down the road. According to a recent article by usatoday.com, it’s important to crunch the numbers to figure out the costs of owning versus renting. By talking to a new home consultant with HiLine Homes, you can learn about home plans that fall within your personal budget. A recent article by dailymail.com shows one in four Americans spend more than 50% of their household income on rent. Some households spend 70% of their income on rent. Experts say spending more than 30 percent of your income on rent is excessive.
Enjoying tax advantages
Instead of wasting money on rent, you can enjoy tax benefits that come with home ownership. A piece by bankrate.com points out that you receive sweet tax breaks as a home owner including the mortgage interest deduction. Also, if pay points on your home loan, you also get a tax break.
Having freedom and flexibility
When you have a residential home builder in The Northwest construct a home for your family, you can ask for the floor plan that will best accommodate your needs. As a home owner, you have the freedom to turn your home into a rental down the road. You can paint the home the way you like. Renters often deal with so many restrictions and limitations. Many of the improvements you make will increase the value of your home, which doesn’t happen when you rent.
Owning your home outright
Even if you don’t buy your home with cash, you know eventually you can own your home outright. As a long-term renter, you don’t walk away with any equity. A recent study by zillow.com showed it only takes about 2 years for homeowners to breakeven in terms of the money spent on closing costs, taxes and maintenance compared to renting the same home. After two years, you begin to build solid equity in your home. If you decide to sell, you will likely walk away with a large check at closing while your friends who break a lease leave with nothing to add to their bank accounts.
At HiLine Homes, we understand feeling frustrated by wasting money on rent. With a custom home, you can enjoy choosing the layout and features you desire. We have a variety of home plans for your lot in The Northwest. For more information on a beautiful home built on your site construction, please contact us.