Why is Buying a Home Better Than Renting?
If you’re considering relocating somewhere in Los Angeles County, you might have a hard time choosing since there are many neighborhoods and cities in the area, each
with its unique charms. Glendale is one of our top picks, and for a good reason.
Glendale offers one of the best shopping experiences in L.A., plus the city has a friendly neighborhood and green space for miles. It’s certainly a beautiful place to call home. The question is, should you buy a home or rent one in Glendale?
Finding a good house entails making the important decision to either buy or rent. Renting might seem more attractive to those who have limited budgets — but if you want a long-term investment (and with rates at all-time lows occasionally in the short term, too), purchasing a house in Glendale has amazing benefits that you must consider.
Buying a home is a big financial decision, and we share some of the top reasons why purchasing a house in Glendale is better than renting.
Contact our mortgage experts and ask about a Glendale, CA home loan for financing.
You Can Customize Your Space
Whether you want to destroy a wall to enlarge the master bedroom or give the kitchen space a makeover, owning the house means you have more freedom to customize the home without worrying about losing your security deposit. The improvements can also increase the value of your property if you sell it.
Can Make a Positive Effect on Your Credit
Unlike rent, mortgage payments are usually added to your credit report because they get reported by your lender. If you always make on-time payments, you can increase your credit score. And, if you currently don’t have an installment loan, adding one to your credit mix can also help because lenders like seeing variety.
Owning a House Forces You to Save
If you're considering purchasing a home in Glendale, saving up money for the down payment is crucial. This helps you have the motivation to get your finances in order. You need proper discipline to make a budget and stick to it to save the cash you need.
Homeowners are known for having more financial stability because it takes proper discipline to save the cash needed as a down payment for the property.
Having your own house allows you to change your focus from saving cash for next month’s rent to saving for your future — whether it’s for college tuition fees, retirement, or other long-term goals.
If you’re considering buying an FHA-approved condo in California, call or message our mortgage officers for assistance.
In Case of an Emergency, You Can Take Out a Second Mortgage
Because your property is considered an investment, you can sometimes use it to get a second mortgage, wherein you can borrow from the equity you’ve built up on your house.
You can do this through a home equity loan or a line of credit. A second mortgage is a type of secondary loan added to your primary mortgage. You can use the second mortgage as a financial backup for emergencies or financial tie-ups.
Keep in mind that because your house is considered the collateral for the loan, if you can’t keep up with the mortgage payments, the bank can repossess your property.
Homeowners Can Take Tax Deductions
The main tax advantage of owning a house is the ability to reduce mortgage interest payments, but the benefits don’t only stop there. Homeowners can also deduct eligible expenses (for instance, a certain energy-efficient improvement) and, in some instances, can avoid federal taxes on earnings from the sale of the property.
Every mortgage payment builds up equity in your property and gets you closer to full ownership. If your house’s value increases because of the hot market or desirable home updates, you could enjoy a huge return if you ever sell your house.
Rents Continue to Increase
Rental costs have gone up at a very fast rate throughout the U.S., and it’s expected to keep increasing. Because of the high rent cost, paying a monthly mortgage is often comparable to or even cheaper than renting a house.
There are many reasons why buying your own house is better than renting, as we have shared above.
If you want to purchase your first home in Glendale, Nuline Funding can help you finance your transaction.
Get in touch by dropping us a line or sending us a message on our website.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.