In today’s market, service members have more reasons than ever to consider home ownership. From the low interest rates, flexible VA Loan guidelines, and rising rents, buying a home is a better option. Let’s take a look at 5 reasons buying is better than renting for service members.
Reasons Buying is Better Than Renting for Service Members
Cheaper to Buy Vs. Rent
When it comes down to buying vs. renting, the biggest factor for most is the monthly cost. Rent has long been considered a cheap alternative to homeownership, but that reputation is quickly changing. Buying a home is now cheaper than renting in 98% of U.S, metropolitan areas. Additionally, house prices are continuing to lag. All of these factors are making it a great option to buy vs. rent.
Perhaps one of the largest reasons buying is better than renting for service members is the equity you build over time. With a rent check, you pay your landlord, but at the end of the lease you walk away with $0 in investment. With a mortgage payment, what you pay monthly goes toward how much of your home you own, and could be used for future refinances or buying a new home. If you’re paying the same amount or less a month for a mortgage, wouldn’t it be nice to build an investment at the same time?
Deductions give home owners a reason to smile once tax time rolls around. Home owners get unique tax breaks by staking property claims. Additionally, the interest payment on the monthly mortgage payment is deductible, as well as some moving costs. Tax rules vary by market, so always make sure to consult your real estate attorney before proceeding.
Flexible VA Loan Guidelines
As a service member, you have access to all of the benefits of VA home loans. With VA home loans you have up to 100% financing available, no monthly private mortgage insurance, flexible credit score limits, and seller concessions up to 4% of the reasonable value of the property. These are all benefits that are not available to you when renting.
Opening a home loan adds a tremendous amount to the available and open credit category of your credit score. A lot of times banks favor those who own a home, which is why the questions “do you rent or own a home?” on loan applications. This is a good factor to keep in mind if you plan on investing in other properties down the line.
Opportunity to Personalize
Aside from the monetary benefits of owning a home, there is also a huge emotional reward from owning a home. When you buy a home you are free from landlord restrictions and rental policies, and you are able to create any space you want. When you own a home you are able to paint the walls any color you want, add living space outside, and update kitchen hardware without fearing the rules of renting.
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