Home Ownership is Better Than Renting
A recent study showed the owning a home is better than paying rent. Why does this seem to be old news? The question has often come up and it is always the same…………..YES, its more economical to buy a Tampa new home than rent. Tampabay.com recently blogged on this subject and stated many logical reasons why it is a great time to buy Tampa homes.
People are constantly faced with housing issues and the question of renting versus buying and unless your credit score is less than 580 it’s much better to own than rent.
The government still offers loan types with 100% financing, so for those whose income levels meet the generous requirements for USDA, you can own a home for zero out of pocket. For the buyer who earns in excess of $100,000 annually and does not qualify for the USDA program the most common loan is FHA and for veterans, the VA loan is still very popular. With interest rates being at all low’s all of 2010, the payment on a home is almost always going to be less than rent. Even for buyers who want a brand new home, built by a new home builder, owning a home is still more affordable than rent.
With owning a home, your interest is tax deductible. Real taxes are tax deductible as well. When renting a home, you are just helping the landlord pay off their mortgage and their real estate taxes. Why not help yourself. Find an affordable home, payments less than rent and get all the income tax benefits at the same time.
With each house payment, a portion of the payment goes directly to the principal of the home, The more you pay towards the principal, the more equity you have in your home. The equity you have in your home is just like a savings account. As your equity becomes greater month after month, your savings increase. Not only will you save monthly by having a lower payment with a purchase versus rent, but you will also be building a savings as your equity increases.
Renting is temporary. Owning a home is for a lifetime. It can still be the American Dream. You just need to do your own comparisons. For more information about whether you can own a home visit www.highlandhomes.org.