It’s a popular debate. Should you rent? Should you purchase a home? It often comes down to personal preferences and lifestyle. There are some real, tangible financial benefits to owning a home:
- As you make your monthly payments you are building “equity” in your home which ultimately translates into personal savings. As the value of your home appreciates over time, your equity continues to grow.
- With a fixed rate mortgage your monthly payment amount is set. You won’t experience annual increases and will enjoy predictability for your budget.
- Mortgage interest payments and property taxes are tax deductible, adding (oftentimes significantly) to your savings at the end of the year. For instance, Turbo Tax notes in their tax tips about purchasing a new home, “If you are in the 25 percent tax bracket, deducting the interest basically means Uncle Sam is paying 25 percent of it for you.”
- Should you choose to move in the future, the sale of your home can provide funds for your next home or put dollars back in your wallet. Consider that over simply receiving all or some of your security deposit back at the end of a lease.
- If you move at a later date you have the option to keep your condominium and rent it, creating an income stream.
- With a home purchase you can personalize your home to suit your tastes!
AN EXAMPLE: Monthly Payments
With rents rising in Downtown Seattle’s neighborhoods you may find that owning a home can be a more cost effective choice. Your mortgage may actually be less than your rent! And as noted, with a 30-year mortgage you will have certainty of monthly payment. Here’s an example:
- 1 bedroom / 1 bath home – 743 SF – $535,950
- 20% down payment
- Loan amount: $431,960
- Payment: $2,499 monthly plus HOA dues (includes taxes)*
Down payments and programs
Luma’s preferred lenders can provide insight and information regarding first time home buyer lending programs, down payment strategies and much more. Buying your first home is likely much easier, cost effective and financially feasible than you might think! Contact one of our three preferred lenders today to explore your own purchasing options.
*Any representation as to square footage is approximate. The square footage or floor areas shown in any marketing or other materials may be more or less than the actual size and square footage of the residential unit, common area, or any other portion of the project. The developer/seller reserves the right to change features, amenities and pricing without notice. Renderings, photography, illustrations, floor plans, amenities, finishes and other information described herein are representative only and are not intended to reflect any specific feature, amenity, unit condition or view when built. The actual condition of the project, amenity or unit, when and if completed, will control. The improvements and amenities depicted are proposed only and need not be built. There is no representation or warranty that any particular improvement or amenity will be constructed or constructed as shown. No representations and warranties are made with regard to the accuracy, completeness or suitability of the information published herein. Obtain the Property Report Required by Federal law and read it before signing anything.