There are a lot of factors to consider when you are deciding whether to buy or rent your next home. However, there are several compelling reasons to opt for buying instead of renting. If you are on the fence about buying one of the homes for sale in Wedowee AL, make sure that you take these factors into consideration.
#1. You do not need permission to make minor upgrades.
One of the biggest benefits of owning your home is the ability to make changes to the property without requesting permission from your landlord. For example, if you want to change the flooring, light fixtures, or paint color, you can go ahead and make those changes rather than waiting for approval.
The only thing you need to watch out for is the homeowners association. In some communities, you will need to stick with the guidelines laid out by the homeowners association. These guidelines typically restrict exterior modifications and help the neighborhood as a whole retain its value. While these restrictions can be annoying, they do help to prevent your neighbors from constructing an eyesore that takes away from the entire street.
#2. Your mortgage interest and property taxes are tax-deductible.
One of the biggest benefits of purchasing Alabama real estate is the tax deduction you will receive for your mortgage interest and property taxes. This deduction can lower your housing costs by several hundred dollars each month. In many areas, the cost of a mortgage and the cost of a rental payment can be similar. However, these tax deductions can help to tip the scales in favor of a mortgage.
#3. You will have a fixed housing payment.
Rental rates tend to rise each year. Your mortgage payment, on the other hand, will remain constant over the life of your loan. At first, your mortgage amount might be similar to a comparable rental property. As time passes, the rental rates will outstrip your fixed mortgage payment, making it cheaper in the long run to own property rather than rent.
#4. You will build equity and benefit from appreciation.
It is important to note that a portion of your monthly mortgage payment goes towards building equity. When renting, you do not reap any long term financial gain from making your rental payments. Building equity can help you down the road when you eventually choose to sell or refinance the property.
While your mortgage payments will remain the same, your home’s value will not. In general, homes increase in value each year. This means that the equity in your home will quickly outstrip the value of the payments that you have made.
For these reasons, nearly 6 million people purchase homes in the United States each year. If this list has made you consider purchasing Lake Wedowee real estate, reach out to our team at Wedowee Lake and Lands Realty.