Buying Vs Renting | DT Properties in Littleton, CO
So, what is the difference between buying versus renting? What are the actual benefits of owning your home? I get asked the questions a lot so I thought I would go over that a little bit today. I headed to downtown Littleton, which is a great area and one of my favorite places to be to reflect on the benefits owning a home has.
The first is so important because you are building an investment in yourself. That home builds equity over time, meaning you're taking money from one pocket and putting it in your other pocket. You're basically paying yourself when you pay your mortgage. You're investing in yourself, and your future, in that property. So in the future, as your equity builds, if you needed to pull money out you could refinance your home and get cash out to buy another property, pay off bills, go on a vacation, whatever you need.
So besides building a legacy for you and your family, there are also a lot of tax benefits that come with homeownership. You're able to write off at the end of each year certain tax benefits. Now I’m not an expert in taxes, so you want to talk to your personal tax accountant. They’ll help you find out what benefits could apply to your situation and the area you’re in.
You also get the opportunity to personalize your space to your needs and tastes. If you've ever rented a place, you know you can’t paint anything, you can’t tear down any walls. When you buy, you can go as HGTV DIY as you want, and as long as you do it well you’re building value rather than racking up charges on that deposit you’ve paid.
Now, this isn’t me saying renting isn’t great for certain seasons of your life. There are really great and important reasons someone might choose to rent a home. Say, if you're traveling you're not here for very long, or if you want to decide what area to live in. It might be the right choice if you're looking to really dial down, cut back on debt, and build a better, more financially stable platform to buy a house from. However, just remember, when you're paying rent, you’re paying someone else’s mortgage and you're building their wealth.
So if you’re ready to stop helping other people build their legacy and start building your own, give us a call. Even if you can't get the house you want right now, that’s okay! We can help you come up with Option B. You can get creative, buy a fixer-upper house, a condo, or a townhome that you can invest in. That way you build that equity to get yourself in a position for the future. So you CAN get into the house of your dreams.
If you have any questions, give me a call, I would love to help you on your journey.