5 reasons home ownership in Houston TX is better than renting
Most people continue to live in a rented accommodation for one of the following four reasons:
- They can’t afford a home,
- They have bad credit,
- They believe renting is better than homeownership as it helps them save money,
- They don’t want to commit to homeownership.
If you can’t afford a home or don’t want to commit to homeownership, you should probably continue to rent, but we - here at Shop Owner Finance – believe that bad credit shouldn’t stop you from owning a home.
If you are financially disciplined and can arrange for a large down payment, you should definitely consider buying a home as homeownership offers many advantages. In our program, we help credit-challenged individuals and families learn how they can buy any home in Houston with owner financing.
Here is why we believe that homeownership is always better than renting in the long run:
Your home is an investment also
The 2007-08 financial crisis scared prospective home buyers as many home sellers went underwater (owing more on their home than it was worth). But the reality is that all types of investments move in cycles. Didn’t the stock prices plummet during the financial crisis? Did it stop people from start investing in stocks again? It didn’t. The same goes true for real estate investment. The home prices are at their peak now and the supply-and-demand imbalance will ensure that they continue to rise in the near future.
Most renters believe that their expenses are stable and predictable when they are renting a home. In most cases, major renovations or repairs are the responsibility of the landlord, right? But these renters fail to take into account periodical increase in rent. Most landlords raise rent almost every year.
The opportunity to build equity
When the rent rises, the tenant loses money. But when a home appreciates in value, the homeowner makes money. Due to a short supply of rental properties, rents are expected to rise steeply over the next few years. However if you buy a home now, the short supply will actually benefit you as your home will appreciate in value.
Instead of rent, you will pay monthly mortgage or owner financing installments as a homeowner. You pay down the debt each month, reducing what you owe on your home. It will increase the equity. You can count your equity as your monthly saving.
You can even liquidate equity by taking out a loan against it.
Claim tax deductions
Homeownership offers you the opportunity to claim tax deductions on your mortgage payments. You can save a lot of money in the initial years of mortgage when the interest takes up the biggest chunk of your payments.
Many credit-challenged people buy homes with owner financing in our program. They use owner financing because conventional lenders turned down their mortgage application due to their bad credit situation.
Homeownership helps our clients build credit. Since their monthly payments are reported to credit bureaus, their credit score improves and they can refinance with a conventional mortgage.
Some other benefits include predictable monthly costs (in owner financing, you can easily get a fixed rate mortgage), greater privacy and a sense of pride.
If you want to stop renting and become a proud homeowner, but your bad credit situation is stopping you from buying a home, we can help you. To know how, set an appointment today.