The question keeps replaying in your mind: “Should I keep renting or is it best to purchase a home to call my own?” Team TREO’s here to help! Here are eleven reasons you may want to ditch your landlord and put your money where your dreams are:

1. Rents continue to increase.

The cost of rent continues to rise throughout the country. We expect this trend to continue. Research from the Urban Institute shows that rent in many markets has grown much faster than median incomes. The high cost of rent means that paying a monthly mortgage is often comparable to or even cheaper than renting a home. This info is readily available on Zillow's Rent vs. Buy Calculator, showing how many years it will take you before buying a home equals the cost of renting. We call this the "breakeven horizon."

2. Homeownership is a better long-term investment.

Homeownership is an excellent investment because it's a method of forced savings. When you buy a home with a 15-30-year mortgage and make monthly payments, you will own a home to sell at the end. However, if you rent a property for 15-30 years, you won't get any of your monthly rent payments back. You pay the landlord's mortgage in trade for the convenience of a rental. If you're ready for the commitment, owning the home you're living in can be a profitable savings account.

3. Interest rates are historically low (but possibly not for long).

The argument for buying instead of renting gets stronger the lower the interest rates get. What may seem like a slight difference in your mortgage rate can make a huge difference in your monthly payment and even the amount you end up paying for the home in the long run. Interest rates are still competitively low. So, now is a great time to purchase a home and take advantage of low rates. Locking into a low 30-year mortgage rate today could save you hundreds of dollars each month for decades to come. When comparing the benefits of owning vs. renting, you will find that many of the current rental rates are higher than a mortgage payment. In addition, you do not get the advantage of a yearly tax deduction when you're renting.

4. Down payments can be as little as zero dollars.

Sound too good to be true? It's not. There are loan programs and government assistance programs that can get qualified home buyers into a home with a zero-dollar down payment. That does not necessarily include closing costs, though, so keep that in mind. Programs vary by lender, and borrowers must meet specific requirements. If you're looking to buy a home with no down payment, you could look at a VA loan (for veterans, active-duty military, military spouses), a USDA loan, or the Chenoa Fund.

5. You can use gift money towards a down payment.

That $25 check from Grandma is always nice…

But what if Grandma, or any family member, decided to gift you significantly more? Believe it or not -- using gift money for a down payment is allowed. The amount you're eligible to receive depends on your loan program. There's a chance you'll still have to come up with your own money to supplement the down payment cost, but every bit counts.

6. You gain equity as property values continue to rise.

Home values have risen and will continue growing in the future, making homeownership a profitable long-term investment. Per The Denver Post, U.S. home prices rose more than 3% in 2019 through October. Why does this matter? Because increasing property values mean that the money you spend on your home will provide significant returns in the long run when selling, refinancing or taking out a home equity line of credit. And, every time you make a mortgage payment, a portion of that payment pays your loan down each month, giving you more equity in the home. 

7. Higher loan amounts

Housing inventory recently fell to a two-year low. Even with favorable mortgage rates, a first-time homebuyer will likely struggle to find a residence they can afford with fewer homes on the market to choose from. Thanks to higher loan amounts on conforming loan programs, you can finance more of the home, increasing your chances of finding one within your budget.

8. Predictable monthly payments

Are you tired of your rent rising? Are you sick of your budget fluctuating? That won't happen when owning a home and using a fixed-rate mortgage. You'll always pay the same amount each month, each year. Plus, there's no risk of a landlord trying to kick you out because he wants to sell the home. Want a better idea of what to expect? Use our simple mortgage monthly payment calculator to estimate your monthly mortgage payment for a new home loan. Enter a home price, your expected down payment, and your desired loan term to get an estimated monthly breakdown of expenses.

9. Bring in extra income by renting a room

Being a homeowner means you have an opportunity to earn extra income by renting out a room. Maybe you bring in a long-term tenant to rent your basement, or perhaps you look at short-term tenants, such as renting a room on Airbnb. As a homeowner, everything is entirely up to you -- how much you charge, how often you have someone renting from you, and more. There's no landlord to ask permission from or roommate that needs convincing.

10. Tax deductions

Being a homeowner does not have to be just a long-term aspiration. Instead, enjoy short-term savings via annual tax write-offs, mortgage interest payment deductions, and other deductions depending on each individual's situation. These deductions often amount to significant savings, and they are, of course, not available to renters.

11. Because you want to!

Don't let the Debbie Downers convince you there's no way you'll be approved to purchase a home. If that's your dream, go out and get it! You owe yourself to determine whether owning vs. renting is best for you. It doesn't hurt to talk to a Realtor or a mortgage lender to find out what you're capable of before you write your dreams of homeownership off. 

Are you ready to get started down the road to homeownership? TREO's here to help.