Contrary to many opinions, you do not need 20% down and a credit score in the 800s for buying a home and unless you plan to move within the next three years, it may be in your best interest to purchase your next place rather than renting. There are loans available for those with credit scores in the 500s with zero down payment. We have a lot of information about buying a home on our website. Please take a moment after reading this post article and check it out here. Here are the top five reasons you should consider buying a home in Tallahassee, FL!
1. Wealth / Savings
Several years ago, I helped a young lady (only 19 years old!) coming to Tallahassee for school to buy her first home for a little less than $90,000. It wasn’t very big, the wall paint was hideous, and the backyard muddy, but she knew it was temporary and put up with a slightly longer drive to school and work and a roommate. Over the two years she lived there and the three years she leased it to that same roommate, she painted it and landscaped the yard and put in a new HVAC. Last year, she sold that house and put over $40,000 in her pocket. She had needed to sell to avoid capital gains and was very happy with the proceeds she pocketed.
Owning a home is forced savings and while many renters fear another housing crash, historically real estate is a safe investment and there are few signs of a housing bubble in the present conditions.
2. Freedom / Privacy
Even if you have your own room and a separate lease, you will likely be sharing a common space. Even if you live alone, in an apartment complex you will likely be sharing the amenities offered. While most landlords limit your size and number of pets, if you own your own home, you can have three cats if you want and that big fluffy lap dog! If you own your home, you can paint the walls whatever color suits you. You can sit in the backyard staring at your firepit and not have to worry about anyone stumbling through your private space. You can plant whatever makes your heart happy and make changes to the interior without getting permission from your landlord.
3. Rent is more expensive
Rent is usually more expensive than a mortgage for a 3 bedroom, 2 bath in Tallahassee. Every renter we helped buy this year was paying less in their mortgage than they were renting for in Tallahassee. Someone posted a small house for rent in desirable neighborhoods on Facebook for $1,500 a month. The owner had just purchased the house and their mortgage payment was less than $1,100. That’s over $400 in passive income. Homeowners should be prepared for additional expenses such as maintenance and repairs, and they usually qualify for tax breaks for interest payments that renters would not qualify for as well.
4. Mortgage payments never increase and eventually end
Let’s face it, most landlord increase the rent yearly. They can do this because the market for housing increases every year. When you own your home, your mortgage does not change year over year. Your payment can change if there’s a change in your homeowners’ insurance or taxes, but your mortgage payment will never increase. Also, if you make one extra payment a year (easy to do if you are paid bi-weekly) it will take almost seven years off your 30-year mortgage. Can you imagine not having a monthly housing payment? Your landlord wouldn’t ever make you stop paying him.
5. Homes can be inherited
If you rent, your landlord does not even have to renew your lease. He can force you to move out. If you own your own home, you decide when you sell and move. And if you never sell, your family will benefit from your real estate investment after you are gone. In conclusion, if you are interested, here is a little information on the Real Estate Marketing Trends for 2021.