Young couples often think it’s better to rent. They figure they need more time to save for a down payment. Some couples just don’t want to settle into one place just yet, thinking that they will figure out where they want to settle in the future.
But did you know that buying a home as a young couple has many advantages? Sometimes it just makes more sense than renting. Keep reading to learn the reasons why.
Rent Throws Money Away
When you rent, you give money to the landlord. That landlord owns the home and reaps the benefit of a home investment. What if for the same money you could do that? Then you would stand to gain the equity and profits from the home. Why give those profits away? You have to pay to live somewhere, so why not make it somewhere that you can call your own and reap the benefits of the investment yourself?
You May Get Tax Breaks
Homeowners get tax breaks on the interest they pay on their mortgage and on the real estate taxes they pay. As a renter, you don’t get those tax breaks because you don’t pay interest or taxes directly. Guess what, though? A portion of your rent money probably goes to one or both of these charges; you just may not realize it. Wouldn’t you rather pay these items directly and see the benefits on your tax return? You could lower your tax liability and own your home.
An Investment for the Future
You might not be thinking about retirement right now, but it will come quicker than you realize. If you invest in a home now, chances are you will have a lot of equity in the home come retirement time. Even if you don’t stay in the home forever, you still stand to make a decent return on your investment. You can then use that money to buy a bigger home and gain more equity. You can also put the money aside for retirement. Either way, you invest in your future, something that rent money cannot do for you.
Buying a Home Means Buying Into a Community
There’s something to be said about belonging to a community. Renters don’t often have the same feelings of togetherness that homeowners have. When you buy a home, you buy into a neighborhood. You get to know those people and you may even end up doing things for them. There’s a sense of togetherness that you just don’t get when you rent. It may have something to do with the pride of being a homeowner and being able to take care of your own home.
You Can Always Sell the Home
Even if you think you won’t leave in this area forever, you can always sell the home. Of course, if it’s six months down the road, that might not make sense. But if it’s a year or two or even more, chances are you will make a return on your investment. You’ll have paid down the principal and the home will likely have increased in value. When you sell the home for more than you bought it for, you make a profit. You can then use that profit as you see fit. If you rented, you’d just walk away from the home with nothing to show for the money you spent on the rent all these years.
There are many reasons young couples should consider buying a home rather than renting. If you have decent credit, a down payment, and a low debt ratio, it can be a great way to start your first investment.