I wanted to show you what renters have learned when they graduated from my “Buyers’ Assistance Program.” There are several reasons that home ownership can offer advantages compared to renting:
- You accumulate wealth by paying down debt in the form of mortgage payments, whereas rent pays down a landlord’s mortgage.
- Your credit rating improves when you own a home.
- Over time, your net worth increases, allowing you to establish a preferred status with your bank and giving you the opportunity to make other major plans, like owning your own business.
- If you become unemployed, the landlord still expects the rent payment; by contrast, most mortgage lenders will work with you and perhaps add the missed payments to your mortgage.
- Owning your home allows you to choose how to live.
- If you decide not to live in your home, you can choose to sell and move elsewhere, and over time you will have accumulated equity to take with you – tax free!
- If you require short-term loans, lines of credit, or other revolving credit arrangements, home ownership will provide greater opportunities to obtain those credit arrangements.
- The wealth you accumulate by owning your home is tax free, since equity in your principal residence is not a taxable gain.
- There is a program available for homeowners only, which provides job loss insurance to cover the mortgage payments while you look for work and get back on your feet.
- A mortgage payment can be fixed for up to 30 years.
- You can control $100,000 of an asset for less than 10% of that amount in cash.
- Pride of Ownership: you will be amazed how the small repairs that used to bug you in your rental are now a joy when you own your own home.
- Sweat equity: what investments let you add value by painting, landscaping, cleaning, and remodeling a kitchen?
- Retirement Plan: every mortgage payment and every percent of inflation adds to your retirement.
- You now have an estate to pass on to your loved ones.
- You become a respected member of the community.
If you would like even more reasons why a purchase could help you, please do not hesitate to call or email for a personal appointment for a complete, chronological, step-by-step plan to achieve the benefits we talked about in this letter. We have done it for many others just like you.
Paulo Pinto, REALTOR®