The benefits of buying a house
- It is less expensive to buy than rent
Home prices in Tampa bay are so affordable that it is actually less expensive to buy a house than to rent one.
With FHA government supported loan you can buy a house with as little as 3.5 % down payment, keep in mind that you also will need to come up with 4% - 6% closing fees.
If you are looking to buy an average priced home 3 bedroom 2 bath $220,000. You will need maximum around $21,000 cash to close.
(3.5% of $220,000 is $7,700 down payment plus 6% of $220,000 = $13,200 is the closing costs)
Your total monthly mortgage payments with PMI, taxes and homeowners insurance will be around $1,500.
While renting a 3 bedrooms house costs close to $1,800 a month. You save money by buying a house instead of renting it. Your total monthly mortgage payments with PMI, taxes and homeowners insurance will be around $1,500. While renting a 3 bedrooms house costs close to $1,800 a month. You save money by buying a house instead of renting it.
2. Valuable asset
Owning a house provides you with valuable asset and financial stability. When you buy a house it will appreciate in value over time.
3. Tax benefits
When you own a home, the many expenses like property taxes and interest you pay on your mortgage – are tax-deductible.
4. Home equity loan
Homeownership provides you with the opportunity to borrow money on the equity you eventually build up by consistently paying your mortgage. Securing a home equity loan at a relatively low interest rate "will enable you to get financing for an emergency, large project, or other expense,"
5. Predictable payments
A landlord can raise your rent whenever a lease expires – and often by as much as he pleases. But as a homeowner, you can lock in a predictable mortgage payment for as long as 30 years. Your housing budget goes toward your homeownership, not your landlord's.
6. Freedom to make modifications
When you rent a place you need landlord's approval to renovate your rental and at the end it's the landlord who will ultimately benefit. Being a homeowner gives you the freedom to paint any room any color, replace the cabinets, add a deck, or do any other modifications, adding a value to your property.
7. Increased privacy
Some rentals are constructed of inferior building materials like plywood or shoddy drywall. If your house, townhouse, or condo is built of concrete and stucco, it will provide a greater sound barrier from your neighbors.
8. A secure retirement
A home provides you with a great investment for retirement. The longer you own a house, the more it should eventually be worth. As you get older, you can sell the home and use the proceeds to purchase or rent something smaller. Another option: Rent out the house to maintain a steady income stream so you can travel or do other recreational activities.