EXPERTS LANE n FINANCIAL ADVICE
Are You Still Paying
Your Landlord's Mortgage?
By Nesterine Blair, Real Estate Broker/Financial Professional
Purchasing a home is a big step. It’s not
a purely financial decision; it’s also an
emotional one. So, it makes sense to be
nervous to make such a large purchase,
plus take on the financial responsibility
and the cost of upkeep. However, if
you are ready both financially and
emotionally, you should take the step
to buy a home. A home does not
only provide security and a sense of
accomplishment, it can also set you up
for financial success.
1. HOME OWNERSHIP IS A
BUILT-IN SAVINGS ACCOUNT
One of the best things about owning
a home is building equity. The phrase
“There is no place like home” is still
true. Instead of paying your land-
lord’s mortgage each month, you
are actually putting that money
toward your home. When you buy
a home, you enroll in a forced savings
plan. As a homeowner the first bill
that gets paid is usually the mortgage
payment. Month by month, you pay
down the mortgage and increase
your equity—the amount of money
you can sell the house for less what you
still owe on it. Over a lifetime, home
ownership helps you build wealth.
In the case that you wish to sell your
home, you are then able to recoup
some of this money to put toward
your next home or another big
purchase. Keep in mind that the
housing market can be unpredict-
able, so there is no guarantee that
your house will greatly increase in
value, though usually, that is the case.
2. TAX BREAK ON
MORTGAGE INTEREST
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IBA Success Magazine
n
VOL 4, Issue 4
While renting is more flexible, buying
a home has the bigger potential
long-term payoff, with tax advantages
and quality-of-life benefits. The first
few years of paying on your
mortgage, the majority of your pay-
ment will go to paying on the
interest. You can deduct a percentage
of your interest from your taxes. You
do not have that benefit when you
are paying rent. This can help you
reduce the overall amount that you
pay in taxes each year. It is an
additional perk to owning your own
home.
3. YOU PUT DOWN ROOTS
WHEN YOU BUY A HOME
Everyone gets to the point where
they want stability in their lives.
Owning your own home gives you
a set neighborhood, schools and
community that you can call your
own. Although it's better to rent
if you won't be staying long or if
your plans are uncertain, that kind of
flexibility comes with a price.
It's harder to feel established in a
neighborhood if you aren't a home-
owner. When you buy a house, you
settle in and create a community. An
added benefit, is that you have the
right to paint the bathroom or put in
a rose garden without asking
permission.
For further
information,
please contact
Nesterine Blair at
321-438-6228.
Nesterine Blair
NesterineBlair@gmail.com
NESTERINE
B
uying a home has always been
a major part of the American
dream, but after the most recent
housing crash, homebuyers are
treading more carefully. The question
still remains, “Is it better to keep paying
your landlord’s mortgage, or is now the
time to pay your own?”