Why Buying Is Better Than Renting in Charlotte, NC
With a market hotter than the Sahara desert, you can’t help but question- should you be buying or renting in Charlotte, NC?
Buying is a better option than renting in Charlotte, NC, because it allows you to build up your net worth, have lower monthly payments, and take advantage of tax incentives. Planting your roots will create stability for your family and eliminate yearly rental increases. Take advantage of under 3% interest rates and invest in real estate ASAP.
The benefits of buying over renting in Charlotte, especially in the current market, are innumerous. We’ll tackle each reason below so you can decide for yourself!
Why Is Buying Better Than Renting?
Buying a home can be pricey. However, why waste money on rent when you could be building equity in a valuable asset?
The Top 7 Reasons to Buy in Charlotte, NC are:
1. Building Up Your Net Worth
2. Lower Monthly Payments
3. Stability for Your Family
4. Homeowner Tax Deductions
5. No Yearly Rent Increase
6. Chance for Passive Income
7. Ability to Customize the Space
With all of these benefits, it’s no wonder more people are turning to real estate to invest their money!
Buying Is Better: Building Up Your Net Worth
There’s a reason why many people recommend putting your extra cash into a property and watching it grow.
Just this past year alone, real estate has appreciated by a staggering 14.5%. When you invest and buy property, it is normal to find that the value appreciates over time. The greatest cause for this is supply and demand; right now, the market cannot support the high demand.
This means that you could see a dramatic increase in the value of your home. Strike while the iron’s hot before you miss out. With over 100 people moving to Charlotte daily, the real estate market is only projected to get hotter.
Buying Is Better: Lower Monthly Payments
The hefty downpayment you’re required to put down on a place can be daunting for some. However, once that’s out of the way, you can expect to pay much less for more space.
In Charlotte, NC, the average rent for a 1-bedroom, 900 square-foot apartment is around $1,400. The average mortgage for a 3-bedroom, 2100 square-foot home is just under that, at $1,300. With interest rates so low (hovering under 3% for those with excellent credit), why wouldn’t you pay less for more space?
Not to mention, the downpayment counts towards the value of your home (something a rental security deposit does not). So although it’s more expensive upfront, the initial investment is advantageous to you as time goes on.
Buying Is Better: Stability for Your Family
Nobody likes to move- trust me, I did it once a year in my 20’s and knew when it was time to break the cycle. As your family unit grows, it’s time to plant some serious roots.
Charlotte, NC, is known for having some of the top-rated schools in the nation. Whether you decide to go public or private, there are plenty of great options. Also, there are so many outdoor and indoor activities like the NASCAR Hall of Fame and the Daniel Stowe Botanical Garden- perfect for families with kids of all ages.
The biggest emotional benefit of buying a home is the stability it provides for you and your family. It’s even more difficult to move when you have kids, so why not invest in an area with a good school system before they’re born?
Buying Is Better: Homeowner Tax Deductions
Yes, you pay interest on your mortgage, but that interest expense is deductible when calculating your taxes! Whereas if you rented an apartment or house, neither of those would be considered tax-deductible scenarios.
Other tax breaks you can receive as a homeowner include:
1. Necessary Home Improvements Deduction
2. Home Equity Loan Interest Deduction
3. Discount Points Deduction
4. Property Tax Deductions
5. Home Office Deductions
6. Capital Gains Tax Breaks (for primary residences)
7. Private Mortgage Insurance (PMI) Deductions
All of this helps to limit further the out-of-pocket costs you incur while owning a home! Connect with a qualified accountant to ensure you’re taking advantage of the federal tax breaks when it comes time for tax season.
Buying Is Better: No Yearly Rent Increase
Buying a home in Charlotte, North Carolina, is a better investment than renting because your mortgage payment will stay the same year after year.
Rental prices, in just Mecklenburg County alone, increased by 16% this year. So while renting may seem like the more cost-efficient option now, who knows what the next year will bring.
Landlords are notorious for raising rent each year without warning. There’s no reason to fall victim to that.
Buying Is Better: Chance for Passive Income
You may not be able to buy your forever home, but it could be a great chance for an investment property in the future.
The Southend area of Charlotte, NC, is growing like crazy. Purchasing even just a small 2-bedroom property could bring in around 100% of its mortgage in passive income.
And if the returns are good, you may consider refinancing down the line and buying another to increase your gains.
Buying Is Better: Ability to Customize the Space
Don’t like that ugly bathroom tile? No problem.
When you rent something, you may be able to hang some pictures or swap out the drapes, but you’re unable to make permanent changes without repercussion. By buying a place your own, you can really commit to making every part of it just that: Your own.
There’s no better feeling than changing something into exactly how you want it to look. Unless it’s building your own place, in which case we can’t wait to see what you create!
FINAL THOUGHTS
Given the current market trends, buying your own home is a great option, especially in Charlotte, NC.
The city’s affordable housing market means you can find some of the best deals on homes anywhere with good schools and low crime rates. You’ll also have more stability for your family by owning rather than renting and no yearly rental increases to worry about.
The first step to finding your dream home is finding the perfect agent to help you navigate it all. Here, at Daniels Real Estate Group, we have a team of experts ready to help you start the buying process!
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