Buying a home provides countless financial and psychological benefits. And for single professionals, buying vs. renting is a serious debate. There are several situations where buying a home makes more financial sense than renting—but only if you’re ready to commit. According to a recent study by Trulia, it is approximately 38 percent cheaper to buy than rent in Jacksonville, Florida.
If you’re considering this major financial move solo, be completely honest with yourself when answering the following:
● Are you financially ready? Do you have a stable income and good credit? These factors weigh heavily on the amount you can borrow and the terms of your mortgage.
● Do you plan to stay in the home for at least five years? Because there are upfront costs involved in purchasing a home, you need to stay in it for a few years to offset those fees. This means giving up the freedom to move to a new city should a job opportunity arise.
● Can you afford the home you want on a single income? Starter homes are still a great investment. Master-planned communities like Nocatee offer single homebuyers a huge selection of builders and home styles—even custom homes—for a range of budgets.
One purchase, many benefits
If you answered yes to the questions above, here are several reasons why you shouldn’t feel like you have to wait for marriage to find your dream home. Homeownership provides:
● Long-term wealth - according to the Federal Reserve Board, homeownership is how wealth is accumulated. On average a homeowner has a net worth of $184,000 compared to the renter’s net worth of $4,000.
● Forced savings - as a general rule, homes increase in value over time. Even if the value of your home just keeps pace with inflation, you are building equity that can be turned into profit when you sell your home. There are other ways to save, but they often require more discipline.
● Tax savings - from deductions for mortgage interest to property taxes, home ownership has several advantages where the IRS is concerned. When it’s time to sell your home, you can also benefit from a capital gains exclusion on up to $250,000 in profit if you’re single.
● Pride of ownership - in addition to feeling like you’ve obtained the American Dream, you can also enjoy the freedom of knowing you can paint, remodel and even own pets without paying extra deposits or obtaining the approval of a landlord first.
● Predictable monthly payments - no matter the market conditions, it’s always recommended to secure a fixed-rate mortgage, typically 15 or 30 years in length. This ensures you won’t face fluctuations in payments that you may not be prepared for.
Purchasing a home is the largest financial commitment most people make. But it can also provide a nice return on investment. If your finances and career situation are stable, there’s no reason to wait for “the one” to start enjoying a home all your own.
To learn more about affordable new homes in Nocatee, visit the Nocatee Welcome Center or call 1-800-NOCATEE.