Home ownership has changed in the United States over the past several years. The generations labeled “Millennials” and “Gen-Z” are putting off buying their first home and choosing instead to rent or live in alternative housing like RVs. However, owning a home is about more than just a roof over your head and actually provides many long-lasting benefits that you would be remiss to ignore. Check out this list from your friends at GVC Mortgage and consider if home ownership might be right for you.
The fact is, renting comes with risks. Typically, you sign a year-long lease that guarantees the rental price for that time period. However, each year, you have to renew your lease and possibly be subject to rent increases. Or worse, your landlord might decide to sell the property and stop renting altogether. This means that you could be paying more and more for the same property, or have to move before you are ready to. When you own a home, your mortgage may fluctuate slightly, but it will not drastically change year to year, and you will never face a cancelled lease.
2. Tax Breaks
Another benefit that renters do not see is tax breaks. Mortgage interest and certain closing costs are generally tax deductible, while rent is not. And the best part is that you’ll get the most deductions during the early years of your mortgage when you’re paying the bulk of your interest. Check with a tax professional about your individual situation and find even more home ownership-related tax deductions.
3. Improve Your Credit Score
Finally, buying a house can improve your credit score, especially if you don’t have a long credit history. Making consistent payments will show that you are a responsible borrower, and credit bureaus often like to see mortgage payment history rather than smaller accounts like credit cards. And because very few landlords report rental payments, paying your rent on time likely isn’t doing anything for your credit.
If you’re currently renting a home but you wonder what it might look like to own, don’t hesitate to contact our team at GVC Mortgage at (317) 564-4906. We can determine whether you qualify for a home loan and what your mortgage options are. Our mortgage professionals would be glad to help you decide whether to keep on renting or consider purchasing your first home in the greater Indianapolis area.