There are a few things to keep in mind when deciding if buying or renting is the best move for you. Keep reading to uncover some of the top benefits of buying a condo vs. renting.
7 Benefits of Buying a Condo vs. Renting
For many, buying a condo is far superior to renting when it comes to financial gains, but there’s much more than just that. Consider these additional benefits of buying a condo vs. renting:
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- You have free rein to do whatever you want within the interior walls of your condo. One of the greatest value-adds when you purchase a condo is the endless list of renovations you can do to upgrade your space, ultimately improving your home value. When you rent an apartment, you typically won’t have much wiggle room with what you can replace, and any updates that you do make will most likely have to be reverted back to its original upon move-out.
- Your monthly mortgage payment stays the same. This is another huge benefit of owning a home. Unlike most apartments that increase in rent annually, when you own a condo, your monthly payment is locked in for the period of your loan.
- Historically, homes appreciate over time. In the majority of cases when you purchase a home, you’re also purchasing an appreciating asset. Things like location, renovations, and the length of time you stay in your home affects your return on investment, but many homeowners are generally able to sell for more than they purchased their home for.
- Homeowners receive tax benefits. Every year, homeowners are able to deduct property taxes and mortgage interest when it comes time to file taxes.
- You get to build equity. According to Quicken Loans, Equity is the difference between what you owe on your mortgage and what your home is currently worth. For example, if you owe $200,000 on your mortgage and your home is worth $300,000, you now have $100,000 of equity. Many things will affect your equity, including the total amount you’ve paid off thus far on your mortgage, any renovations made to your home, and the appreciation of your home.
- Earn extra income by renting out an extra room. When you’re a homeowner, you have the option to rent out an extra room, a floor, or your entire home for extra income. If you don’t plan to rent your space to monthly tenants, you can consider listing your room on Airbnb or VRBO for a little extra cash.
- Strong pride in ownership. Owning a home is a huge milestone and is one to be celebrated. When all is said and done and you’re settled into your new place, the feeling that you’re now living in a place you can call your own is something truly surreal.
Whether you’re still tossing around the question “Should I rent or buy?” or if you’re eager to start your home buying journey, connect with us today. Our team of experienced professionals are well-versed in the Chicago market and are here to help you answer any questions you may have.
