Is renting better than purchasing? As home values stagnate, many people seem to think so.
But, before you decide to sign that lease, consider these points:

1. Rent usually goes up. If you have a fixed price mortgage, your payment will be the same for 30 years and – at the end of that time – you will have no house payments whatsoever.

2. A home is an investment. When you pay rent, you are putting money in someone else’s pocket.When you pay a mortgage, part of that money is being invested in your property. Eventually you can own your home free and clear.

3. A lease is short-term. If you have a one- or two-year lease, at the end of the lease a landlord can decide to no longer rent the property. If you own a home, you can live there as long as you like (if you pay the mortgage and taxes).

4. You will pay less income tax. The interest you pay on your mortgage AND your real estate taxes are tax deductible on your federal and state income tax returns. Rent is NOT tax deductible.

5. Real estate tends to increase in value. That fact is difficult to believe in a down-trending market, but in the long term real estate prices have done nothing but go up.

6. Mortgage rates are at historic lows. Because of the low rates, today it is more cost effective to buy a house than to rent one of the same size.

 7. You become part of a community. Homeowners tend to be more invested in their communities, to stay longer in their residences.
8. You have more influence. Municipal officials, whether it is fair or not, tend to pay more attention to property owners than to renters.
Would your landlord like this color?
9. You can plant a garden. With a home usually comes a little land – a place for a garden plot or a swing set.
10. You can paint the walls RED. When you own your home, YOU are the landlord. You can paint, decorate, make the home your own.
Newport Cove, New American Homes’ waterfront community on the Chain O’ Lakes near Antioch, IL, has new homes available for immediate occupancy starting at $395,000.  Or, we can build you a new home starting from $325,000.

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