When an individual in New Jersey is contemplating whether they should continue to rent a home or buy one, they will have to weigh the benefits of each option to determine what best suits their situation. Generally speaking, owning a home presents a number of benefits over renting but it takes some time for people to have enough capital to buy a house.
Some of the biggest advantages of owning a home include the following:
Accumulating equity during the process of making mortgage payments, meaning that the homeowner’s financial interest is growing. This is much different than renting because rent payments do not earn equity.
Most of the time, the property value will increase as time goes on. Therefore, if the homeowner decides to sell the house a few years down the road, they may make a profit on the home because it can sell for greater than it was purchased.
Some homeowners may be able to deduct mortgage interest and property taxes. It is best to consult with an accountant or another tax professional to see how a homeowner can benefit.
Of course, while owning a home is often very beneficial, individuals must save up enough money for the cost of a down payment as well as other costs associated with purchasing a home so it may be necessary to rent until they have the funds to buy.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.