Buying vs. renting

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Sarah Warnock, RE/MAX Alliance

Sarah Warnock, RE/MAX Alliance

LOVELAND – A home is an investment, and it takes time to let that investment take root and grow. “The main goal of homeownership is to build equity,” said RE/MAX Alliance Broker Associate Sarah Warnock. “You can use the equity you built to help you get into your next home, you can borrow against it for home improvements, vacations, or purchasing a 2nd property. Depending on the market, which is ever-changing, building equity from owning your own home can propel you into financial opportunities not possible with other investments.”

For those considering renting over buying, Warnock lists the following three tips on why homeownership is more advantageous:

No. 1: Tax write-off
“Owning your own home creates a big tax write-off,” said Warnock. “You’re allowed to write-off the interest that you pay on your mortgage for the year. Interest can definitely accumulate, giving you a nice tax write-off at the end of the year. Additionally, interest rates are still low, allowing you to afford more today than at other times. A good interest rate is key in keeping your monthly mortgage payment affordable.”

No. 2: Owning a home for less than rent
“Currently, the rental market is very competitive,” added Warnock. “There’s not much available and rents are high. Oftentimes you can actually own your own home for less each month than what you pay in rent. By renting, you are basically contributing each month to your landlord’s financial portfolio, not your own.”

No. 3: Pride in homeownership
“Perhaps the most rewarding aspect of buying vs. renting is the sense of pride that homeownership cultivates,” concluded Warnock. “Although risk is involved, anything worth having usually involves risk to some extent. It is a proven fact that over time, homeownership is the very best way to accumulate wealth and secure your financial future throughout your lifetime.”

Sarah Warnock has been a Realtor for 14 years and has earned the Graduate, Realtor® Institute (GRI) designation, the Certified Residential Military Specialist designation, and is an e-PRO®. In 2013, Sarah earned the Executive Club Award from RE/MAX and in 2014 and 2015 the 100 Percent Club Award. Sarah was just elected as Chair-Elect to her local real estate board. For more information visit homesincolorado.com/sarah-warnock, call 970.412.3421, e-mail swarnock@remax.net or visit 750 W. Eisenhower Blvd. in Loveland.

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