Millennials prefer to buy a home rather than rent
A growing trend seen among millennials is to buy rather than rent a home in Madison. With owning one’s own home an integral part of the American dream, most GenXers have decided to own property of their own instead of living on rent.
With a large number of condos for sale in Downtown Madison WI some of the possible reasons for this are as follows:
Protection against inflation
A major concern for those living in rented homes is the steady rise in inflation. This has consequently lead to a steady rise in rents as is evident from the Downtown Madison condos for rent, which has seen a steady rise in their rental value. These rental expenses tend to burn a hole in the wallet in the long term. Rather, than face a steady rise in rental charges most millennials have realized it is more prudent to search for Madison lofts for sale. When they purchase a property they can lock in a fixed mortgage rate which remains unaffected by inflation for years to come.
Buying a home is a sound long-term investment
It is a known fact that owning a home proves to be a sound investment over time. While there are exceptions like the 2008 real estate crash, apart from this property remains of value. An added benefit is that prospective homeowners can buy a home even in luxury condos Madison WI at an attractive down payment of just 3-5%, with the rest payable on mortgages. Such investment benefits are not found anywhere else.
When a homeowner pays his monthly mortgage the payment helps to reduce the principal amount of the loan. If the house is under the mortgage and the owner decides to sell he receives a part of the money invested upon sale. Similarly, if they have paid off the mortgage and then decide to sell the property they receive all the money they invested. Whereas when compared rent is a 100% expense with all the money gone.
Tax benefits of buying property
One of the biggest benefits of buying property is that the property taxes and interest on mortgage payments is tax deductible. Contrastingly rent is not deductible in tax. Property owners can sell their home and keep the profits without having to pay tax. This is, of course, subject to the property being the primary residence with limited tax-free profits.
Owning your own home offers you freedom which you can never experience staying in a rented home. e.g. If you do not approve of the kitchen or bathroom you can go ahead and renovate the place to suit your requirements. On the other hand, if you stay in a rented home you just have to live with it. Then there is the satisfaction you experience when you own your home. Having your own home offers you complete freedom something which we as Americans cherish and enjoy. Nothing compares to being the owner of your own property!