Many people do it, and it seems like a great way to earn some extra income if you don’t mind having a tenant living on your property. 

However, there are rules you’ll need to follow if you choose to turn your garage into a living space.

 A garage space has to be livable

 First and foremost, if you’re going to rent a garage to a tenant, it must be habitable according to state and federal laws just like any other dwelling. It has to meet building and fire code requirements along with other specifications. For example, you’ll need to provide heat, plumbing, and electricity. This seems easy, but it’s not actually that simple.

 Most likely, your current garage isn’t livable and will need some major improvements to make it rentable. Even if you’ve insulated the space and added drywall and furniture, that’s not enough to make it legal.

Before you even think about publishing ads for your garage rental, you’ll need to hire an inspector to evaluate the building and make recommendations for getting it up to code for habitability. Once you do that, you’ll have to get the proper permits and make those changes, which can cost more than $100,000 in some areas.

 General costs for a garage conversion

 If you choose to convert your garage to an apartment, you can expect these general expenses:

• Design fees can range from a few thousand to more than ten thousand dollars
• Builder’s risk insurance can be around $2,000
• Fees for applicable energy efficiency calculations (these will vary by state)
• Waterproofing, insulation, building retaining walls, etc. can cost several thousand dollars
• Construction costs can be upwards of $100,000 or more
• Appliances and fixtures that don’t come with the build can cost a few thousand dollars
• Permits and fees can run between $5,000 and $15,000

Why you shouldn’t skip building codes

As tempting as it is, never skip building codes when converting a garage into an apartment, no matter how busy you are. If the building itself is unsafe, your tenants might become injured. 

However, skipping codes also leaves you open to lawsuits. For instance, a tenant can sue you just for not being up to code, but that’s not all. Say your illegal garage tenant starts a fire and ends up injured. They can sue you for their medical bills. On top of that, you’ll also be on the hook for all the damage.

If you don’t want to build a full bathroom or kitchen in your garage, you can agree to share these spaces in your home with your tenant. However, you’ll have to make them accessible 24/7, which means your tenant will be coming in and out of the house frequently. If you’re already going to spend the money converting your garage, it’s more convenient to add a bathroom and kitchen than to coordinate shared living space.

The benefits of renting a converted garage

There are many benefits to renting out your garage once it’s been legally converted to an apartment. The most obvious advantage is generating extra monthly income from rent. Another benefit is having your tenant close by, which means you can keep a better eye on your rental property. It’s also cheaper than buying a brand-new property.

Another benefit you may not have considered is reduced liability for discrimination lawsuits if you share a common area in your home, like a bathroom or kitchen. Normally, the Fair Housing Act (FHA) prohibits landlords from rejecting applicants based on their gender, faith, or other personal factors. However, the FHA doesn’t apply when a tenant and landlord share living areas.

If you share space in your house with your garage renter, the U.S. District Court of Appeals ruled that you can discriminate regarding who you rent to, however, you can’t advertise discriminatory preferences. There are workarounds that will help you find the right match.

The downside to renting a garage apartment

Other than having a tenant close by if you prefer privacy, the main disadvantage of renting a converted garage is the cost. It’s a major investment, so make sure you’re committed to renting it out long-term.

Should you convert your garage? It depends

If you don’t need your garage and you want some extra rental income, converting your garage to an apartment can be worthwhile. On the other hand, if it was just an idea and not part of your investment strategy, you’re probably better off keeping your garage for storage. If you need extra money without taking on the expense of a remodel, you can always rent your garage as storage space.

However, some property investors avoid working with real estate agents for various reasons. For instance, they aim to save money on fees and commissions. However, if you own a rental property, you can read more info here to enlighten yourself about rental property management commission and fees.  

On top of that, if you’re curious about how real estate agents can help you as a first-time real estate investor, consider reading the list below.    

     1. They Provide Thorough Market Knowledge  

As a real estate investor, one of the primary benefits of working with an agent is getting extensive market knowledge. Best agents are knowledgeable about all the aspects of the real estate market. This primarily includes how different factors like the unemployment rate and interest rates can influence the market. They also have a thorough knowledge of the ins and outs of the housing market. Aside from this, they understand more information about homes for sales than the details you’ll find on the Multiple Listing Service (MLS).   

    2. They Have Excellent Negotiation Skills  

Real estate home are pointing to insurance contract signing and are explaining to customers at the office.

Selling a house can be an emotional task for many property sellers due to the emotional attachment to their properties. Even if you do your best to make an objective judgment, there’s still a high possibility that an emotional state will show in your negotiation skills. This is why it would be worth considering hiring a real estate agent. 

As a property investor, working with a real estate agent helps you ensure you’re only making objective and rational decisions when negotiating with buyers. In addition, a real estate agent encourages you to focus only on the big picture. Hence, you can sell your house successfully without feeling uncomfortable in the negotiation process.    

     3. They Give Expert Pricing Advice  

Much like the negotiation process, pricing your house can be challenging when making objective decisions. But with the help of real estate agents, they understand the market, the neighborhoods, and the comparable housing prices. Your agent can show the current prices of other houses similar to yours and help talk through the price you’d like to set for your home.   

Although the agent’s primary goal is to sell your property for a profitable price, they’re going to have a realistic view of factors you might have overlooked due to emotional attachment to your house. As you eventually work with your agent, you can set the price for your property together so you can expect to get the best possible price.   

     4. They Streamline The Process And Handle Paperwork  

Real estate negotiation is often a lengthy process. However, working with a real estate agent can make the transaction more manageable for you. Your agent will manage showcases and open houses, so you don’t have to do all those meetings yourself. A real estate agent will also help you determine serious buyers by filtering those unnecessary phone calls that might lead to nowhere. Conversely, if you’re a property buyer, your agent will likewise shield you from being bombarded with phone calls and the marketing strategies of property sellers.  

Apart from taking too much of your time, a real estate negotiation involves extensive paperwork. This process also includes complex real estate contracts, requests, offers, counteroffers, settlement statements, and so on. Many property investors are overwhelmed by the amount of paperwork they have to handle when closing a real estate deal. However, hiring an agent can make the process more convenient.   

     5. They Have Network Of Connections  

Real estate agents are experts at making connections with other real estate professionals. Their networks provide you with further insights into the market, which you won’t simply get when you choose to work unassisted. Many real estate agents hold a list of professionals they trust and who they have worked with before. Hence, a real estate agent can provide you with a list of professionals that can help you with the selling process. These professionals include home repair professionals, mortgage professionals, real estate appraisers, and lawyers.  

With that in mind, instead of taking the time to look for these professionals and reaching out to them independently, your real estate agent can give access to these people. This part is highly beneficial, especially if you’re a first-time real estate investor, as it’ll enable you to build your network of experts you can rely on for future real estate investment deals.  

Conclusion  

Overall, working with a real estate agent as a first-time property investor is likely to minimize the lengthy and stressful process when closing a deal. Thus, make sure to hire the best suitable real estate agents in your area so you can get the most satisfying results.  

Draw up your business plan

Your business plan will include an executive summary, a description of your business, a market analysis, and much more. You will have to outline how you propose to organize and manage your business and what services you intend to offer. Financial projections are necessary to establish how much funding you will need and you will also need to show how you plan to market and sell your services. There are business plan templates online that can help you draw it up. 

Once you have a number of properties, using a property management company for managing rentals in Atlanta could give you the best return on your investment. Property management company, Evernest,  operates in Atlanta, Denver, Colorado, etc. and manages properties for up to 3,000 property owners. You can also choose from NestEgg, Home365, and Mynd are some other great options in Atlanta.

Find out what certifications and licenses you need

Before you set up your business, you must make sure you have the certifications and licenses required in Atlanta. Some leasing agent roles only require a high school diploma, but if you want to have your own business, you should have a real estate license. 

A licensed real estate broker has taken courses and passed an exam covering property management and other topics like contracts, taxes, and insurance. Belonging to certain associations, such as the Institute of Real Estate Management (IREM), can also help to give your business credibility and give you a chance to network. 

Register your property rental management business

You will need to choose a name and legal entity to register your business. Many property management firms are set up as LLC or Limited Liability Corporation. LLCs can protect your personal assets if your business gets into trouble. The legal entity you choose will affect your tax filing status. 

Every small business in Atlanta must pay a non-refundable registration fee and the total cost of a business license will depend on the number of employees and the amount of money you expect your business to make. 

Figure out financing

The capital you need to start your business can be one of the biggest hurdles you have to face. Today, entrepreneurs who want to start new businesses have more access to funding outside of the traditional channels than before. They can not only get the money they need but can often get it a lot faster than by going to a bank. Crowdfunding has become a popular way to raise funds for startups. You may be able to attract the attention of an angel investor or get help from friends or family for your venture. 

Start small and grow

You can start your rental property business with only one property. You will need another source of income until your business grows but treating it as a business from the start is important. You will need to open a bank account for your business. 

Being a good landlord requires knowledge and experience so you need to continually educate yourself. If you are serious about creating a sustainable business, you need to be professional from day one. When you are successful with one property, you can expand to more properties. Developing more financing options and business relationships can help you build a larger portfolio.

Set up efficient systems

Set up a system for applications, credit checks, and background screenings. Develop a professional rental agreement (there are online templates you can use). Talk to the local housing authority to understand the local landlord-tenant laws so you don’t inadvertently violate them. 

Make sure your bookkeeping practices are efficient and you know exactly what is coming in and going out. Cash flow is a problem that shuts many businesses down once they have run through their initial capital. 

Using proven rental property management software will enable you to keep track of your deposits, rent payments, lease details, renewal dates and maintenance requirements. Without efficient systems in place, you won’t really know whether your business is profitable or not. 

Understand the necessity of property maintenance

Depending on the condition of the homes you want to rent out, you may need to fix them up. If you purchase homes through property foreclosure, they are often in poor repair. You will need to develop good relationships with contractors and repair people so you can get repairs done efficiently at the best prices. Even homes in good condition can have unexpected breakages. You don’t ever want home to get into a state of disrepair and lose their value. 

Before delving into what a no search indemnity policy is and why it is an essential home management aspect, let us clarify what exactly a property search is.

What Are Property Searches?

Simply put, conveyancers conduct property searches in collaboration with the local authority with the aim of providing you and your mortgage lender with accurate knowledge about the land on which the property is situated. This may include everything from locating floodplains to determining what landowners are responsible for Chancel payments to the local church.

These searches are not set aside for buyers alone; nearly all mortgage lenders need them as well. They want to know that their investment will pay off, and bad search results will lead to smaller loans or even revocation. However, this is an uncommon occurrence, and most lenders will gladly refund the entire sum of the principal bid after the searches have been completed. 

What is No Search Indemnity Insurance?

The purpose of a no-search indemnity insurance policy is to provide financial protection to land, possession or property if a case arises concerning them. This strategy is necessary to guard against any negative entries found during the property search.

When you plan to buy a property but do not perform an in-depth search, a no search purchase indemnity policy is important. Local government records, property sewer service, local land charges, and mining can all be part of the search.

As part of the conveyance process, solicitors submit searches to relevant public authorities. Drainage, water, environmental, and local authority searches are all aspects of the search process.

A solicitor can spot property issues as a result of these searches, and buyers have the option to withdraw their interest or proceed with their investment plan if they find a negative result.

In the event of delays, homebuyers and sellers might need a no-search indemnity policy. Some mortgage lenders can continue with contracts and assign completion deadlines without requiring a property search.

What Does No Search Indemnity Quote Cover?

No search indemnity quote, like any other insurance policy, varies by provider. Be that as it may, your conveyancer will instruct you on which option is best for you and your house, and most will plan it for you.

These policies usually offer financial protection if the house, land, or belongings have faults discovered during a search. Despite this, there is still a possibility that searches may not be completed, and even though your lender is unaffected, these adverse discoveries can disrupt your quality of life as a homebuyer. 

Loss is typically measured as the cost of adverse entries discovered or as a decrease in the property’s market value due to that defect. Coverage depends on the buyer being unaware of the potential entry and because this coverage is not present in their household insurance coverage.

Will Lenders Accept this idea?

Any search indemnity scheme is dependent on the specific conveyancing method and the lender. As a result, the lender has a say on whether it’s a good investment or not.

Lenders usually make no-search insurance policies. However, unique transactions/services, such as remortgages, are prohibited. It’s possible that it doesn’t extend to sales.

Choosing an Expert Solicitor

To get the best out of defending against property issues, you must choose a trustworthy attorney. A traditional practising solicitor has experience in several different fields of law.

Your chosen attorney should have a director-led service that prioritizes client protection and satisfaction over their pockets. Your lawyer must possess the qualities and experience necessary to provide high-quality advice to achieve a favourable outcome.

Client satisfaction is essential in every industry. Meanwhile, you want to know that the service provider is willing to devote time to property analysis and is approachable.

Conclusion

Buyers are often unaware of the scope and detail of the searches that municipal officials must complete before purchasing a home. Although certain mortgage lenders need these searches, the rest of them will also go through with the deal due to the lack of a check indemnity clause.

As stated in this article, the strategy has several advantages, including relieving the burden of waiting for officials to inspect the land. This is particularly true in recent years, as a large number of potential homeowners have waited in line to complete the requisite searches on their homes.

A real estate agent in Waco, Texas was severely injured when two pit bulls attacked her. The homeowner kept the dogs in the garage and was able to prove that the agent knew the dogs were there, and thus, avoided being sued. But this case is proof that anything can happen.

Liability

In California, injured parties can file a premises liability claim under Civil Code 1714(a). Under the law, property owners and property occupiers that rent commercial space from a landlord have an obligation legally to protect the reasonable safety of customers and any individual invited on to the premises. If the property owner fails to keep the premises in what is considered reasonably safe condition, they can be sued for damages. 

In real estate, a home that is being sold is no longer the legal responsibility of the previous owner, so during an open house, for example, it can be hard to figure out who is at fault. The simple answer would be if the home is for sale and being shown by a realtor, that real estate agent or the company who employs him or her is responsible for the safety of visitors. 

Potential Sources of Injury in Real Estate Settings

Certain situations can be considered hazardous and violate duty of care: 

•  Animal attack, as illustrated in the Waco situation previously referenced
•  Wet floors or icy sidewalks
•  Tripping hazards
•  Heavy objects falling or dislodging
•  Fire from candles, fireplaces, or wood stoves

Accident Prevention

Being prepared is the best defense and preventative measures should be taken to keep the property safe for visitors:

• Inspect the stairways. 
  • Unstable staircases or cluttered stairways are a recipe for disaster.
• Take a quick walk-through to make sure there are no wet floors, cords, or rugs in the visitors path. 
  • This may seem obvious but it’s surprising how often these small details are missed. 
• Clear any tripping hazard even on level floors, including moving boxes.
• Ask visitors to wear shoes. 
  • Real estate agents may be proud of staging and shiny floors, but for someone wearing socks, that newly waxed floor is a slip-and-fall accident waiting to happen. 
• Keep all areas well lit. 
  • Your duty of care includes making sure the rooms are bright enough for your visitors to safely move through.
• Remove anything with jagged edges. 
  • Construction crews could leave nails or tools laying around.

Unfortunately despite your best efforts, accidents still happen. An experienced injury attorney needs to be on speed dial if you find yourself with litigious visitors. Taking conscientious accident prevention measures will go far in protecting you from litigation.

Is a Real Estate License Right for You?

First off, you need to make sure that getting a real estate license is the right move for you. Because while it’s a fairly straightforward process, it does require some time, work, and expense. Here are a few factors that indicate a career in real estate is the right fit:

• You’re tired of working for other people and want to be your own boss. You desire the flexibility to set your schedule, work the hours you want to work, and call your own shots.
• You don’t want to spend four years obtaining an expensive degree just to make a career pivot. You’d rather get started in a matter of weeks or months.
• You’re tired of a salary that’s set in stone. You want unlimited income earning potential that’s directly correlated to hard work and effort. 
• You want a career that’s challenging and continually evolving. You like the process of growing and improving over time.
• You’re a people person who likes meeting and interacting with new people on a daily basis.
• You want a career that provides future flexibility to effortlessly pivot into other niches. 
• You want a career that provides you with real life skills and strengthens your existing talents.

If you answered yes to most or all of these points, then a career as a real estate agent is something that you’ll find rewarding and enjoyable. 

5 Tips for Getting Your Missouri Real Estate License

In order to legally call yourself a real estate agent in the state of Missouri and represent buyers and sellers in transactions, you must obtain your Missouri Real Estate License. The process isn’t complicated, but it is something that you have to follow with precision.

Here’s what the process looks like:

• Complete the 72-Hour Pre-License Courses

Before you can apply for the state licensing exam, you must first complete 72 hours worth of pre-license education. This comes in the form of two courses:

• The 48-hour salesperson pre-examination course
• The 24-hour real estate practice course

You’ll have to pass a final exam for each course before you’re allowed to schedule the state licensing exam. You can increase your chances of passing these courses by choosing a good online Missouri real estate school.

• Pass the State Licensing Exam

Next comes the state licensing exam. This is an in-person exam that requires you to pass both a “national” portion, as well as a “state” portion. You must answer 70 out of 100 national questions correctly, as well as 30 out of 40 state questions. 

• Get Fingerprinted

Once you pass both of your exams, it’s time to get fingerprinted at an IDEMIA location. This will require you to register with the Missouri Automated Criminal History Site (MACHS).

• Apply for Your License

“After you have met the eligibility requirements and passed the examination, you may apply for your real estate salesperson’s or broker’s license,” The Missouri Real Estate Commission explains. “You must submit your application for license to the Missouri Real Estate Commission within six months of the date of your 48-hour pre-examination course completion.” 

If you have specific questions about applying for your license, you can contact the Missouri Real Estate Commission directly. 

• Find a Broker

In order to practice real estate, you’ll need to find a broker. This process is known as hanging your license.

There are lots of brokers to choose from, so you’ll need to make your decision wisely. Some will take as much as 25 to 40 percent of your sales commissions, while others will only require a small flat fee. Research your options, weigh the pros and cons, and interview with a couple of different brokers to see which one you like best.

Enjoy Your New Career

A career in real estate is rewarding and meaningful. It gives you the opportunity to be flexible and to feel like you’re actively helping people improve their lives. If this is something that intrigues you, then we’d highly recommend pursuing it. Whether you’re in Missouri or another state, the process tends to be fairly simple and straightforward. It’s up to you to put in the work!

Real estate supply

Dubai sees a massive increase in the supply of real estate, both in residential properties as well as commercial properties. Investors feel that there needs to be some form of supply control to achieve price realisation. However, with the upcoming Dubai Expo, it is expected that millions of tourists will visit Dubai, many of whom might invest in Dubai’s real estate market. Also, given the increased interest of foreign investors to invest in Dubai’s real estate market, it seems that the increase in supply will only lead to a rise in demand. As both the supply and demand increase, the prices of property will skyrocket, making this a great time to invest in real estate in Dubai.

Dubai Expo

The upcoming Dubai Expo will attract millions of tourists to Dubai, some of whom might stay for a few days while some might remain for a few months. Most of these visitors are going to look for a place to stay which will include short-term rentals, long-term hotel bookings and of course, some might even choose to purchase property in Dubai. If you’re thinking of investing in Dubai’s real estate market for rental income, then this is definitely a great time for you to invest. It is expected that the demand for short-term rentals during the Dubai Expo might just exceed the supply. The question at hand is, what will happen after the Dubai Expo?

Golden Card

The government of Dubai has come up with various initiatives and schemes to encourage people to move to Dubai. One of the most prominent schemes being the Golden Card which allows entrepreneurs, scientists, investors, and students, all of whom are at the top of their field, to get a ten-year renewable residency visa. The Golden Card has been provided to hundreds of individuals and their dependents. As the number of people that are moving to Dubai due to the Golden Card starts to increase, so does the demand for property. If the demand keeps growing at a stable price, it will eventually move past the supply and lead to an increase in property prices. Hence, if you’re thinking of buying a property in Dubai for personal use or investment purposes, now would be a good time to do so.

Foreign investor interest

Foreign investors are very interested in buying a property in Dubai. First and foremost, investors do not have to worry about paying high taxes on their rental incomes because this income is tax-free. Secondly, investors don’t have to worry about the safety and security of their properties or tenants because Dubai is considered to be one of the safest places in the world. Third, Dubai is one of the most visited cities in the world, making it a great place to invest in buy to let properties. If you’re thinking about purchasing a property in Dubai to earn a rental income, then this investment will be highly profitable.

There are so many reasons to buy property in Dubai; one of the main reasons to invest in Dubai’s real estate market is that this city is still developing. Dubai has several residential projects, commercial projects, housing projects, and off-plan properties that are still in the phase of development, which makes this an excellent time to invest. After a few years, once the supply of real estate becomes relatively stable while the demand for property continues to rise, the prices of property will just shoot up. If you’re looking to buy property in Dubai as a long-term investment opportunity, then this is a great time to buy property in Dubai. Why not connect with the Allsopp & Allsopp property experts to find your perfect property in Dubai?

Nowadays, human beings are unable to survive without energy, in whatever form it is available. Technology has transformed the realms of humanity. In every corner of the world, electricity is available through vertical break switches to aid the men. The advancement of science has cultivated new ways to fulfill the requirement of energy. Today we can produce heat or power basically from different sources. Thermal, hydro, nuclear powerplants, extraction from sun and air, and even from biogas found in garbage could utilize to make energy.

Energy requirements have been increased drastically since the last few decades. Large industrial sectors with human growth and settlements to new places have burdened the energy sector with havoc. We are advancing with a flash, with an increment of our needs. But science is coming up with new brilliant ideas to save energy and make our surroundings and buildings energy efficient.

Why Energy Efficient for Buildings?

We are using nature’s blessings widely to produce energy. At a specific time, they will end, and we will have to find new ways to produce electricity. The production of power also damages the atmosphere by spewing out harmful fumes and smoke. It is, therefore, essential to save energy to have a better future for upcoming generations. Low usage of energy directly lowers your utility bills from which you can save a lot. Not only this, if your building is energy efficient, its property worth increases. Displaying Energy Certificates 250m2 notify you about how valuable your building is. That could assist you in improvising your structure most beneficially. To do so, here are the five most elegant ways to maximize residential building energy efficiency.

1. Measure the Energy Load and Improvise

Today, in this advanced world, the residential buildings are equipped with all the luxuries. They have air conditioners, fancy lightings, electrical gadgets, different machines, leisure entities, and much more. There are many extra things installed as well in the buildings to give it an aesthetic look. Taking in to account all these things, get the total energy load measured by professionals. When you have the facts and figures on the table, you could decide reasonably what needs to be in your building and what’s just present to increase your utility bills. It is the first step to have a structure that consumes energy only when required.

2.  Add Insulations

The most efficient buildings are those where there is the least energy transfer. The air conditioners condition the air according to the seasons, warm air in cold days, and fresh air on sunny days. It uses a lot of energy to keep the temperature balanced. If there are leaks, the temperature balance will become hard, and more power is needed to maintain it. Therefore, adding insulations could help you in maximizing the building energy efficiency. You can add a layer on the door sides. Windows with high-quality glass should be there to avoid unnecessary heat transfer. Tainted windows or curtains could also assist in stopping the heat from out coming in or vice versa.

3.  Use LED Lights

People, thinking that a light bulb wouldn’t be trouble even if left open, don’t pay much attention to it. The conventional lights consume a lot of electricity. Science has now come up with LED lights that are very energy efficient and have a long life. Studies conclude that LED lights save up to 75% of energy than fluorescent lights. Nowadays, light sensors are trending in the market. They sense the presence of human beings and turn on the lights themselves. If there is nobody in the room, the sun will turn out by itself. Another perk of LED lights is that they can meet the diverse needs of lightning from very dim to bright lights.

4. Switch to Energy Star Equipments

The conventional electrical appliances for daily use are present in every home. They consume excessive energy to run. You should keep your eye on the market for high-performance, energy-efficient appliances and buy them to save energy. Energy Star certified products usually save up to 15% of electricity and work far better than regular devices. It paves your way to maximize the energy efficiency of residential buildings by leaps and bounds.

5.  Use Heated Water Wisely

In the colder days, water is heated to a specific temperature to make it usable by the residents. It approximates that 10% of total energy consumption is in boiling the water. Water should be used with great care and shouldn’t waste away. It is ethical to save water, anyways. If less water has utilized, the stress over the heating system would be low, and it wouldn’t consume more energy.

Conclusion

Our world is expanding day by day. Energy demands are going to peaks and are higher than the previous years, every year. We are developing new methods to cultivate energy, but the pace is quite low. Many countries in this world have deprived of electricity. Making our buildings energy efficient not only helps us in reducing our bills. It also plays a part in saving nature and aiding the people who have deprived of this basic necessity of life. Hopefully, with everyone united together, we can deal with the energy crisis and move toward a better and smart world.

1. Historically Low Interest Rates
In today’s housing market, there are historically low interest rates of about 4 percent. This means that the average homeowner’s money goes further than ever before. Borrowing on a home at only 4 percent is much better than today’s car loans and credit card rates. As of the summer of 2019, the Fed has cut rates for the first time since 2008, putting even more money back in the pocket of today’s homeowner.

2. Freedom to Live How You Want
When you are renting a home, you are generally bound by the landlord’s specifications for the property. The decor, appliances, and outdoor fixtures cannot be changed without the landlord’s approval. If you own a pet, you will have to worry about extra security deposits or breed restrictions. It can be very difficult to find a rental home that accepts dogs and cats.

Buying a home means that you can fully express yourself, with your own decoration choices both inside and outside. If you want a pool, put one in. If you want a fence around your property, build one. You are free to make your own choices and you will not have to fight with a landlord to make them happen.

3. Building Credit Ratings
While most people who are in the position to buy a house have already solidified their credit ratings, a history of making mortgage payments on time goes a long way toward cementing your credit rating. When your credit is fully established, you will have an easier time getting home equity, car, and personal loans.

4. Owning is Better for your Financial Health
A home can be an excellent investment if property values are on the rise. Even if property values dip in your area, a home is still a valid choice of investment. At the end of your mortgage term, you will own the home in your own right, and you will be able to live in it without a mortgage. When you rent, you will not be building toward your own financial future. Instead, you are only lining your landlord’s pockets.

5. Tax Benefits
Homeowners are able to deduct their property taxes and mortgage insurance on their tax returns. These savings can make the cost of owning a home lower than the cost of renting one. Tax benefits are also available for the first-time homebuyer, making the deal even more profitable, says Najmi Muhammad.

6. As Rent Rises, Mortgage Payments are Constant
Your landlord will probably raise your rent each year, but your mortgage will stay the same. Except in the case of adjustable-rate mortgages, you can count on your payments staying the same. You also have the option of refinancing your mortgage to take advantage of new, lower interest rates. This presents a major advantage of owning a home versus renting.

6. Homes Appreciate in Value
In most cases, a home will appreciate in value over the typical length of a mortgage term, 15 to 30 years. Home valuations rising will equal more money in your pocket for home improvements and home equity loans. At the end of the mortgage term, you could choose to sell and take your profit to a better home, or you could live mortgage-free at your current property.

7. Maintenance Costs Can Vary
Some renters hesitate to buy a home because they know that they will be responsible for repairs to the roof, siding, appliances, and other expensive items. They feel that they have a certain peace of mind when it comes to their landlord’s responsibilities. However, when you buy a home, you can subscribe to a home warranty. This goes above and beyond your homeowner’s insurance to cover home appliances and systems including heating, air conditioning, refrigerator, washing machine, and more. This affordable policy can help to offset some of the cost of purchasing a home versus renting.

Buying is a Smart Choice

Buying a home is the smartest choice for your financial future. With these 7 tips from Najmi Muhammad in mind, start looking into the mortgage process and discover what kind of house you could afford instead of paying rent. You will be able to express yourself in your home choices, and you will not be beholden to a landlord.