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If you're looking to relocate to Utah and wondering whether you should rent a property or buy one, think about the homeownership benefits below. Just take a look at the graph below to see how much owning a home makes you vs. renting and investing 10% of your income.
Stability - Your mortgage payment is fixed for the life of the loan
Salt Lake City is a great place to live. The cost of living is relatively low, the scenery is beautiful, and there are plenty of things to do. However, one of the best things about Salt Lake City is the stability the housing market offers. Unlike many other cities, Salt Lake City is not prone to large fluctuations in the housing market. Additionally, if you own a home in Salt Lake City, your mortgage payment is fixed for the life of the loan. This makes Salt Lake City an ideal place to live if you are looking for stability.
While homeowners can count on the stability of a monthly mortgage payment that remains the same, renters can count on the unpredictability of their monthly rental payments increasing from lease period to lease period. From 2021 to 2022 alone, monthly rent increased nationwide by 14%. In Salt Lake City from 2021 to 2022, the average monthly rent for a 3-bedroom property rose from $1,876 to $2,118.
Tax breaks - you can deduct mortgage interest and property taxes from your taxable income
If you're considering a move to Utah, there are a few things you should know about the state's tax laws. One of the biggest benefits of relocating to Utah is that you can deduct mortgage interest and property taxes from your taxable income. This can amount to significant savings over the course of a year, especially if you have a large mortgage. Of course, it's always best to consult with a qualified tax professional before making any decisions about relocation. But if you're looking for a state with favorable tax laws, Utah is definitely worth considering.
Equity - as your home appreciates in value, you gain equity that you can tap into later (e.g., through a home equity loan)
When you purchase a home, you're not just buying a physical structure - you're also investing in your future. As your home appreciates in value over time, you build equity that you can tap into later on down the road. For example, let's say you take out a $100,000 mortgage to buy a home that's worth $200,000. After 10 years of making regular payments, your mortgage balance will be down to $50,000 and your home will likely be worth at least $300,000. That means you'll have a $250,000 payout if you decide to sell or at least $100,000 in equity that you can access through a home equity loan. And since your house is serving as collateral for the loan, you'll usually be able to get a lower interest rate than you would on a personal loan. So not only does owning a home give you a place to live, it can also be a valuable financial asset.
Freedom to decorate and make changes as you please
One of the great things about owning your home is that you have the freedom to decorate and make changes as you please. Unlike when you rent a home, homeowners can pretty much do whatever they want to personalize their interior space and modify the exterior of their home to the extent that a city or HOA will allow. This can include painting walls, hanging pictures and shelving, and even making minor renovations like installing new light fixtures or replacing cabinet hardware to major renovations like remodeling your kitchen or adding a second story.
Community spirit - owning a home often means being part of a neighborhood where people look out for one another
Owning a home is often about more than just four walls and a roof. It's about being part of a community and having neighbors who look out for one another. There's a sense of pride that comes with owning your own home, and it's often reflected in the way people take care of their yards and homes. In many neighborhoods, people look out for one another, and it's not uncommon for people to look out for each other's homes when someone is on vacation. Owning a home can give you a real sense of community spirit.
Home ownership has a lot of benefits, which is why it's something that most people aspire to. If you're on the fence about whether or not to buy a home, these are some things to consider. Of course, there are other factors to take into account as well, so be sure to talk to a real estate agent and get their professional opinion before making any decisions. Thanks for reading!
Find Your Utah Home with Angie Clarke and UT Makes Moves / Keller Williams Realty
If you are looking for the right Utah home, then give Angie Clarke with UT Makes Moves a call. I aim to offer an exceptional relocation experience and unparalleled customer service through prompt communication, ethics and integrity, and the utmost care / concern for my clients!
Angie Clarke with UT Makes Moves is your local Salt Lake City home expert, specializing in working with buyers who are relocating to Utah. Whether you are buying or selling, I'd love the opportunity to make your relocation journey smooth and successful...I strive to provide Relocation Elevated: easing minds, building community, and finding home.
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