The inventory of homes for sale in St. Louis remains at historic lows. You may be tempted to stay on the sidelines of the real estate market. Maybe staying in your rental is the right choice.
On the other hand, owning a home has many advantages. It’s an investment that helps you build equity. You can find opportunities in the current market if you have the right strategy.
Learn more about renting vs buying a home and which option might be the best for your situation.
Benefits of Renting Homes
Renting your home makes sense in some situations. You have more flexibility to move. If you anticipate a change in your job, relationship status, or family situation, you may want the ability to change locations easily.
When you rent an apartment, the landlord handles the maintenance and repairs.
You may have fewer housing-related expenses in a rental. You don’t need to pay property taxes. Renter’s insurance is less expensive than homeowner’s insurance.
Benefits of Buying a Home
Buying a home may be the right choice depending on your circumstances. A home purchase has many benefits.
You gain equity in your home over time as you pay down the mortgage. You can borrow against the equity to fund other projects. You can often sell the home for more than you paid for it.
Owning your home means you can renovate or remodel it. You can have pets. You can rent out a room.
You can customize the house to fit your lifestyle.
Tax Advantages
Homeownership has tax advantages. You can deduct the interest you paid on your mortgage from your taxable income. You can also deduct property tax payments and real estate taxes.
This reduces the taxes you owe.
When you sell your home, you may not have to pay capital gains tax on the profits. You may be able to exclude up to $500,000 if you file a joint return or up to $250,000 if you file separately.
Buying vs. Renting When Home Inventory Is Low
A low inventory of real estate doesn’t necessarily mean you won’t find your forever home. A qualified realtor can help you with a well-designed house hunting strategy.
You can find real estate opportunities if you’re ready to take action quickly. Getting pre-approved for a mortgage before you make an offer will help. Your realtor can work with you to make your offer more attractive to the seller.
As the price of rent continues to rise, you may decide that putting your money into building equity in your home makes more sense.
If you’re recovering from financial issues or working to build a down payment, you may want to wait before making a home purchase. Otherwise, you have no reason to delay looking at your options for homes.
Choose an Experienced St. Louis Realtor
Staying in a rental may seem like the safer option in uncertain times. However, you can still find opportunities to purchase a home.
Homeownership lets you build equity. It gives you tax advantages. As long as you have a down payment and the ability to qualify for a competitive mortgage, you can start exploring your options for homes.
The Sarah Bernard Realty Team has decades of experience in the St. Louis real estate market. We’re ready to help you find the right home for your situation. We can help you close the deal that works for everyone involved.
Contact the Sarah Bernard Realty Team today to schedule a complimentary consultation. We look forward to meeting you!