Top 10 Reasons why you should consider buying a home in Kansas City:
Tax benefits. Did you know that you can deduct the interest on your mortgage, property taxes, and some of the costs you pay to buy a home? That is thousands of dollars of tax benefits you are currently missing out on that you are paying (for your landlord) that you cannot deduct from your taxes.
Appreciation. Did you know that homes go up in value? If you bought a $100,000 home in 1967 it would be worth around $950,000 today. That is even with the real estate collapses in the 70’s, ’80s, and 2007. I hear renters all of the time say, “I’m going to wait until homes go down in value.” or ”I heard that home values are going down.” Buy a home today and watch it go up in value over the next 10 years.
Equity. Did you that mortgage payments build equity? That is money you could use. When you pay rent, you will never see that money again.
Hedge Against Inflation. Did you know that rents tend to outpace inflation? This is why there are so many real estate investors. A fixed-rate mortgage stays constant. The best hedge against inflation is to own your home versus rent it.
Payment Predictability. Did you know that the monthly principal stays the same on a fixed-rate mortgage while your rent payment goes up? What do you think your rent payment will be like in 10 years?
Building Credit. Despite no late payments on bills and good credit utilization on your credit cards, your credit scores aren’t near perfect. Why? Credit reporting companies put more weight on a long-term mortgages. I have seen renters buy a home with 650 credit scores and within a year of on-time mortgage payments increase their credit scores to 740.
Savings. When you pay a mortgage you are building equity and when you sell you get your equity back. The first $250,000 ($500,000 for a married couple) is tax free.
Freedom. Have you ever wanted to change the flooring, the color of the walls, or add a deck? First, most landlords do not want you to make changes. But if they do, the landlord benefits from your improvements. When you make the changes on the property you own, you benefit from the improvements. When you own a home, you can make changes any time you want and you can benefit from those changes.
Utility Savings. Have you ever thought that there is no way I could afford the utilities on a home? The typical rental is not built efficiently and is more expensive to heat and cool. Homes have more insulation and added energy-saving features.
It is CHEAPER. If you are comparing apples to apples, a home you own is less per month than a home you rent. In KC a $1600/month home would get you a 4 bedroom, 2.5 bathroom 2 story home with a 2 car garage in many areas, while a $1600.mo apartment typically is a 2 bedroom, 2 bathroom apartment with no garage.
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