Taking the leap into purchasing your own home is a big deal. It takes a lot of consideration, planning, and is likely the largest purchase you have ever made. Although it can be an intimidating idea there are several reasons why purchasing a home in Anchorage or Eagle River can be a better option than renting.
- You build equity: When you buy a home, you build equity with each mortgage payment, until you eventually own the property outright. Buying a home is an investment in your own future wealth. When you rent, you do not build any equity in the property you occupy.
- Your housing costs are more stable: Rental costs can increase over time and are subject to changes in the economy and the whims of your landlord. However, a fixed-rate mortgage provides stable housing costs for the life of the loan. The only element of a fixed rate mortgage that is subject to change over time is the property taxes.
- There is potential for appreciation: The value of a property generally increases over time. This appreciation leads to a potential financial gain when the property is sold.
- You have access to tax benefits: Homeowners may be eligible for tax deductions on mortgage interest and property taxes. Rent does not offer these same tax benefits.
- You gain a sense of community and personal freedom: Owning a home can provide a sense of stability and pride. You can personalize and make changes to the property without checking with your landlord or worrying about your rental deposit. It is also likely that you will stay in your purchased home much longer than you would stay in a rental. Being in one place for an extended period allows you to know your neighbors and invest in your local community.
- Investment opportunity: Real estate can be a fantastic investment. Not only will your property appreciate over time, but you can choose to rent the property when you move out. Renting a property can provide a stable monthly income.
Of course, there are also potential downsides to home ownership. You will incur maintenance costs, there may be less flexibility when you choose to move, and the financial risk if the value of the property decreases will fall on you as the owner. Although there is more responsibility taken on when purchasing a property, the benefits far outweigh the drawbacks.
Your friendly Wolf Real Estate Professional can help guide you through any home-buying scenario. Click the Contact Us button at the top of this page to get in touch with one of our agents today! We can’t wait to guide you through your next real estate adventure!