There are many reasons to invest in real estate. Today we’re going to share a few of the most prominent reasons to invest in your local market and buy a home in the Pensacola area. 


·         Gain an asset


o “This (is) the secret to building wealth – Buy Assets and Avoid Liabilities.” ( Why is real estate a good asset? Because the land will always have value. 


·         Building credit


o Buying a home can be great for building your credit! When you make your mortgage payments, that gets reported to the credit companies. This will increase your score as you pay on time and pay down your mortgage!


·         Cost to buy annually in most areas of Florida is less than renting


o The average cost to rent a 3 bed annually in Florida is $15,300, ( while the national average annual mortgage payment is $12,264 (For a 30-year mortgage.) (


·         No breed restrictions on animals


o If you have a pet that has been classified as “aggressive” breed, you may have issues renting. Dogs such as Pitbulls and German Shepherds are not accepted by most rental companies due to insurance restrictions and liability for the landlord. Some homes will not accept any pets at all! Owning your home would allow you the freedom to determine what type and how many pets you would like to have rather than that being determined by the property restrictions. 


·         More privacy and no interruptions from landlords


o When renting a home, there are times when the property manager or landlord will conduct inspections, repairs, or other routine work. While it can be nice to have the maintenance done, it can’t always be on your schedule, and this often feels like an invasion of privacy.


·         Tax write-offs for interest and taxes


o The Florida Homestead Exemption can decrease the taxable value of your primary residence by $50,000. The main tax benefit of owning a house is that the imputed rental income homeowners receive is not taxed. Although that income is not taxed, homeowners still may deduct mortgage interest and property tax payments, as well as certain other expenses from their federal taxable income. Additionally, homeowners may exclude, up to a limit, the capital gain they realize from the sale of a home. (


·         Build equity in your own home instead of someone else's 


o Cleaning, painting, lawn maintenance, and general upkeep can build equity in a home. Additionally paying off a mortgage also builds equity in a property. In many cases, rent payments are covering the property’s mortgage payment (plus some!). Why build up the equity of someone else’s property when you could build up your own?


·         Make improvements to the home that suit your own preferences


o Sometimes homes can be drastically improved and personalized by something simple like new flooring or painting. When you rent, it is up to the property owner to make these decisions but when you own you get to improve the home however you would like! Even larger things as well, such as building a shed or expanding a home are options when you own.


·         Take advantage of mortgage rates while they are low 


o The graph above shows just how low-interest rates are compared to historical rates. As long as you secure a fixed-rate mortgage, you will take advantage of historically low-interest rates even if interest rates are to raise in the future. Having a low-interest rate allows you to buy more home for a lesser payment.


·         More Stability- live in your home for as long as you want


o When you rent the property owner could decide to stop renting the property, sell it, move into the property, or drastically increase your rent! Protect yourself from unnecessary moves, and give yourself more stability and peace of mind by owning your home. When you own your property, you maintain control of your living situation instead of giving that control to others.


·         Create a better appreciation for the community, subdivision, and your home 


o The pride of homeownership is a real thing. It helps us take pride in our community as well and creates a new appreciation for it. Buying a home gives you an even stronger sense of being a part of something. 


If you’re ready to make the leap to home ownership, reach out to our sales team for advice and browse Pensacola real estate here.