Part of the American Dream is having a place to go home to every night that signifies your transformation into an adult and acts as a symbol of financial stability. The rate of home ownership increases every day and will continue to do so for generations to come, keeping the dream alive, but many rent until they can make their largest – and best –personal and financial investment. Here’s how to make the transition from renting to owning.

Develop a long-term investment strategy

Owning a home can save you money and even get you rewarded for certain upgrades and improvements. These may not seem obvious until tax season. There are tax credits that only a homeowner can take advantage of every year. These include property taxes, mortgage interest, renewable energy products and upgrades, home equity loan interest, and a select number of home improvement options, including solar panels. When you own your residence, the interest paid from your mortgage and real estate taxes is tax deductible. This means, more or less, that the government is paying you to own a home. The costs of home ownership over time are also more stable and predictable than renting over the same period. A landlord decides how much they will increase the rent every year, which is not ideal when you are saving to buy a home. When you have a mortgage, you are more likely to save and develop financial acumen, knowing that your home is an investment that works for you. 

Take advantage of the management company

Condos and apartments usually have a management company that looks after the property and residences. For a condo, the management company or association provides rules and regulations for residents to follow. Residents are aware of the rules and know it is in the best interest of their reputation not to break them or be disruptive. The management company is usually also in charge of implementing a screening process for new residents. These are set up to be voted on by owners, so you can participate as you choose. With a collective vote, you can harness the power of your community and have the opportunity to become/stand out as a leader. While the management company is in charge of the interiors, they are also responsible for maintaining all the common areas of the property, leaving you free to enjoy the pool and social rooms without worrying about tidying up for appearance’s sake. On the other hand, a management company for rentals or a landlord does not always include your voice. The company or property owner implement their own rules seeking little to no input from the tenants. Knowing the rules of a condo association won’t change unless decided upon collectively, you can work within the agreed upon guidelines. 

Have peace of mind/Get creative/Express yourself

Putting your personal touch on your property is expected. Get inspired by an episode of HGTV without facing consequences when you own. Renters must make do with colorful wall art, geometric rugs and swapped out hardware. However, when you own, you can truly make your home an expression of your creativity and goals. Of course, you must adhere to condo rules. But for the most part, you never have to be concerned with returning a property the way it was given. Another aspect of owning is knowing your voice counts. Want to spruce up the lobby or pool deck? In a condo association, there’s a democratic process an owner can follow to take action and share their vision with other owners. If the majority of owners agree with your idea, changes can be implemented. Go ahead and brainstorm updates you would like to see, and in the meantime, you can begin renovating or redecorating your condo. It is your investment and any improvements can increase the value.

Commit to Home Ownership 

Owning a home is a long-term commitment. Once you have decided where you will live, home ownership provides a path towards savings through equity-building. This provides tremendous peace of mind for you and your loved ones. Given the weight of this financial responsibility and any uncertainty about where you would like to grow your roots, renting an apartment is a great option until you are ready to experience the pride of home ownership. 

The Urban Resource team has a combined 200 years of experience in North Beach, Miami Beach real estate. Whether renting or buying, we are ready to guide you through the process from start to finish.  Call us today to tour your dream property! 305-403-8686