Buying vs. renting a house or apartment in Michigan is a long process, especially if you’re moving to the state for the first time. The state provides a fantastic lifestyle to its inhabitants, and the best part is how you can choose between various options. From single-family-owned houses and apartments to townhouses and condos, the Michigan real estate market has lots to offer.
Michigan is home to some of the best communities, so you don’t have to compromise on living in a neighborhood that feels like home. Ann Arbor, Rochester, and West Bloomfield are just a few examples of where you can buy or rent a house/apartment in Michigan.
The decision of buying vs. renting depends solely on you and your financial position. Of course, you will need some professional help from a real estate agent, as they provide the best guidance. To start you off with the process, this article will help you make a decision on whether you should buy or rent a house in Michigan.
Why Should You Choose to Buy a House/Apartment In Michigan?
Having a home is part of the American dream, so the thought of being a homeowner is sure to get you excited. Buying a home will give you a sense of security as you will be the owner of a major asset. There is no doubt that having a house of your own is better than renting, but is it the right thing for you? Let’s find out! If you are open to both buying vs. renting, mentioned below are a few reasons why you should consider buying a house/apartment in Michigan.
You Will Achieve Tax and Interest Deductions
If you buy a house of your own, you receive cost-saving benefits in the long run. When it comes to paying off property taxes and mortgage interest, you may actually receive additional reductions on your income tax returns. Generally, people have to follow the standard IRS tax deduction, and if you have to pay high taxes, you get extra savings in the end.
Increase the Equity and Appreciation of Your Home
When you buy a house of your own, you have to make regular mortgage payments. Sure, this can get stressful, but with each payment, you inch closer to your goal of homeownership. If you combine this advantage with your home’s appreciation, you will build equity over time. For many Americans, having their own home is one of the largest retirement savings. Hence, it is a very effective long-term investment.
Live up To the American Dream
For countless Americans, living independently under their own roof is part of the American Dream, and Michiganders are no exception. In fact, homeownership is a dream for many of them since a young age. Buying a house of your own brings you one step closer to fulfilling that dream.
Achieve Capital Gains Exclusions
When you buy a house with the intention to sell it in the future, know that you will make gains that are tax-free. Suppose you share ownership with your spouse. In that case, you stand to make $500,000. If you’re single, you gain $250,000. These capital gains are quite useful, and you can only attain them once you sell a home after every 24 months.
You Are Allowed to Do Whatever You Want
When you buy a house, you don’t have to worry about following rules or not being able to fix something around the house. Buying a house gives you the freedom to customize your house however you want, so it meets your standards of living. Having this power also keeps you stress-free.
Why Should You Choose to Rent a House/Apartment in Michigan?
Renting out a house or apartment is also another option, and for some, it may be a more reasonable suggestion than buying a house. Mentioned below are a few reasons you rent a house/apartment in Michigan:
Won’t Have to Bear Extra Costs
When you buy a house of your own, you have to prepare yourself to take up numerous costs. From monthly mortgage payments and higher utilities to lawn care and other maintenance costs, you have to pay for it all. Renting out a house is much cheaper, and you don’t have to worry about paying higher bills.
Ask Your Landlord to Fix Issues
Once you move into a house or apartment, you will come across many issues and fixtures. In case something stops working in a rented house, you can ask the landlord to come to fix it instead of doing it on your own. This frees up your time to look after other responsibilities.
You Can Easily Decide to Move Somewhere Else
Suppose you end up switching jobs and the new workplace is far from your current home. In that case, renting allows you to move to a neighborhood that’s closer. Relocation as per your needs becomes much easier when you rent instead of buying a home.
Factors That Will Help You Decide Between Buying vs. Renting
There are a few things you must consider when making your decision to either buy or rent:
Your Financial Status
The decision of buying vs. renting has a lot to do with your financial placing. Buying a house or apartment is much more expensive than renting one. There are many costs to take care of, including mortgage payments and real estate taxes. If you are hesitant about taking up all those costs, it’s best to start with renting a house.
There are many reasons why you would want to buy or rent a house in Michigan. If you’re moving to Michigan with your family, you might want to consider buying a place to live for a better future. You can adjust to renting an apartment or house if you’re single and are moving because of job-related reasons.
You also have to check if you meet mortgage qualifications. Since it requires various aspects, it’s not as easy as it sounds. If you are able to meet these qualifications, you can consider buying a house or apartment in Michigan.
Buying vs. Renting a home is a major decision that will impact much of your life. Make sure you carefully consider your financial circumstances before making a decision. But first, consult with a professional who can help you navigate Michigan’s complex real estate industry. For expert guidance on buying and renting the perfect place in Michigan, get in touch with our team of experts at Crown Properties International.