According to recent data from Redfin, Atlanta Metro’s median monthly rent is currently $2,095. That’s $392 higher than the current median mortgage payment in Atlanta, which is $1,703 (*includes 5% down payment).
Redfin’s Chief Economist, Daryl Fairweather, states, “Those who choose to rent may save money in expensive housing markets in the near term, but long term, they may have to deal with continued rent increases, year after year. Those who move and buy somewhere more affordable now will be paying considerably more than if they bought last year, but will be able to build equity in the long run and ensure relatively stable monthly housing costs going forward.”
In addition to saving on payments month-over-month, there are many other benefits to buying/owning your own home.
Buying a home is also a great way to build individual financial wealth over the long term. As you purchase a home and pay down your mortgage, you gain equity in the house as the value continues to increase over time. Investopedia suggests that it’s also important to keep in mind that like any other investment, certain factors may have a positive or negative affect on the value of your home, including: economy, housing inventory, environmental concerns (i.e. nearby waste sites, landfills), maintenance/repairs, and exterior factors, such as the condition of your neighbor’s home.
However, in addition to building equity, as a homeowner, you are eligible for considerable tax deductions on home-related expenses, such as: paid interest, property taxes, and home improvements. According to NerdWallet, when you file your taxes each year, you may deduct interest up to $750,000 ($375,000 if married filing separately) on your mortgage for your primary home and a second home.
Moreover, owning your own home can provide you with the ability to customize your space to fit your needs, wants, and personality. When you rent, you are forced to accept whatever space you have as is. Although, if you are considering making any big changes to your home, just remember to run it by your HOA (homeowner’s association) to make sure everything is approved.