There are many great reasons to consider buying a home instead of renting in Edmonton, even in today’s economy. Although it’s less common to hear of people buying their first home anytime soon, home ownership is slowly getting more popular again. Here are some benefits of buying vs. renting that you should know.
Buying a Home Is Greener
When it comes to renting a home in Edmonton, you can only change so much about the property in most cases. If the roof needs repairs, it’s up to the landlord to choose the materials. If the energy bills are too high, you’re likely stuck with quick fixes rather than permanent solutions. But when you own your own home, you can make environmentally-friendly choices, such as replacing windows with more energy efficient models, or installing solar panels on the roof.
Home Ownership Is Also an Income Investment for the Future
If you decide to move in the future, you’ll either be selling your house, or renting it out to someone else, in most cases. If you sell, there’s a good chance you can get back more than what you’ve put into it, and if you rent, you’ll be getting a mostly passive income stream for years to come. By buying a home now, you’re investing in an asset that could allow you to create a second source of income in the future.
You Get to Avoid Landlords
If you are a renter in Edmonton, chances are that you’ve dealt with a shoddy landlord or two. With homeownership, you aren’t beholden to any landlord. You don’t have to wait for them to “get around” to calling the maintenance man for a leak, you don’t have to worry about when they’ll finally cash your rent check, and you don’t have to listen to anyone else’s rules for your home. That’s a big benefit that can’t be overlooked.
Mortgage Payments Are Steadier Than Rent
Although there are mortgages that allow for payments to be adjusted over time, you won’t be faced with the issue of rising home costs if you get a fixed mortgage. This differs from rent, which can be raised at the landlord’s discretion every year. This allows you to create a long-term plan for your budget and goals, which is why you so often see that people who are very successful are homeowners. They’ve been able to go after their future thanks to having a stable budget.
You Get Plenty of Tax Benefits
When you pay rent, you don’t get to claim any of that money as a tax deduction. However, there are many ways that mortgage payments can get you some money back on your tax returns. First, the interest payments on a mortgage are deductible. Second, there are some ways that property you own can be written off as a deduction, such as a home office that you use for business purposes, or if you’ve made energy-efficient improvements to your home.
You Can Play the Market
Finally, a great benefit of owning a home is that you can lock in a much lower price on your mortgage and interest if you are smart about when you buy. As a renter, you are at the mercy of inflation and your landlord. As a buyer, you can wait for buyer-friendly market conditions to come around and take advantage of lower prices for good. Then, even when the market shifts in the future, you are still paying the low rates you scored previously.