5 Reasons to Buy at Home at Lake of the Ozarks (Instead of Renting)
The age old question is, "Should I rent, or should I buy a home?" Renting can be a great temporary fix until the option to purchase a house becomes available. Let's look at 5 reasons to buy a house at Lake of the Ozarks instead of renting.
Rent can increase every few years with inflation and you have nothing to show for the money you put in years down the road. When you buy a house with a fixed-rate mortgage, payments will stay the same until the home is paid off. When you're done, the house is all yours. When you rent, you are paying a landlord's mortgage payment instead of your own.
1. No Surprises
2. Tax Savings
The first quarter of the year brings about the dreaded tax season. Homeowners have a benefit here as well, in several areas. First-year homeowners can deduct some of the closing costs (namely the origination fees) on the loan. This amount is often over 1% of the total cost of the home, so the savings here can be substantial. Real estate property taxes are also deductible, as is the mortgage interest, in most cases.
3. Consolidate Debts
When enough equity is acquired in a home, the homeowner can shift a credit line that needs to be paid off onto a home equity loan. This can result in substantial savings, as most home equity loans have interests rate 3 to 4 times lower than traditional credit cards.
4. Avoid Capital Gains
Purchasing and owning a home for more than 2 years can grant a homeowner a "Capital Gains Exclusion" when the home is sold. This means that you can keep profits of up to $250,000 ($500,000, if married) without paying capital gains taxes. See the IRS website for details and requirements of this exclusion. It's a nice benefit for home owners when they are ready to sell their primary residence.
5. Build Wealth
By purchasing a home, a substantial investment is made by the homeowner, and it can build wealth over time. While paying the mortgage each month, a homeowners assets and wealth increase. The way it works is simple, but often misunderstood. The amount percentage of the payment applied to the mortgage increase each year, while the interest portion decreases over the life of the loan.
Owning a Home is a Better Option, in Most Cases
Owning a home is typically a better investment for the long term than renting. Why not work on building your own wealth, rather than someone else's? If you want to look into buying a house at the Lake of the Ozarks instead of renting, I am here for you. Let me help you find the perfect place to call home.
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