Why Buying A Home Is Better Than Renting One
While many people prefer to rent their home, others only think that they should buy one. They see rent as a waste of money, while others don’t want the responsibility of owning their own home. There are advantages and disadvantages to both buying and renting. While most people look at the pros and cons before making a decision, it can come down to personal preference.
Here are some reasons why it is better to buy a home than rent one.
When you pay a mortgage, your home is building equity every month.
Though it seems like you are mostly paying interest, each month you are paying a portion of the principal. Eventually, you will start to see the amount of money that you owe becoming less and less. As you continue to pay toward your principal, you are building equity. Many people use this money to take out a home equity loan.
When you are renting, you are only paying the rent. You are not working toward owning your own home (which can be a valuable asset)!
When you own your own home, you can do whatever you want to it, as long as you follow your local rules.
You can paint the rooms any color that you wish and hang picture frames throughout your home. If you are unhappy with your kitchen or bathroom, you can make the changes that you want, without having to ask permission. You can add a porch, knock down walls, finish the basement, and much more!
There is also a sense of belonging and community.
When most people buy a home, they plan on spending several years there. They put down roots and join the community. They meet their neighbors and find themselves joining a new group of people with a shared interest in the community. When they have children, they will go to school there, leading to a greater sense of community.
You won’t have to worry about your monthly mortgage payment changing.
Most of the time, the amount of money due for rent continues to grow while a fixed-rate mortgage will basically stay the same throughout the life of the entire loan. Though you may have some small changes, you shouldn’t see a rise in price like you would if you were renting and looking for a new apartment.
You may also notice some tax benefits from owning a home.
When you are paying your federal taxes at the beginning of each year, you can deduct your property taxes, as well as the interest that you paid through your mortgage. This amount can really add up, allowing you to save quite a bit of money.
You can also use your home for a rental property in the future.
Though you may want to live there (as you should), if you want to think long-term, you could think about renting it out. If money is tight when you are buying, you might want to think about renting out a room or even the basement to help you pay your mortgage.
Most people prefer to own their own home so that they feel like they are not wasting money. They feel like their monthly payment should be doing something. When you own a home, it is building equity with every payment that you make. You can’t say that about renting.
You can also do whatever you want when you own your own home. You can paint the rooms any color that you want and update anything that needs it. You can change the flooring if you feel like it. You don’t have that freedom when you are renting. Financially, buying a home makes sense. Not only are you building equity, but your taxes may also be less. You can deduct your property taxes, as well as the interest that you are paying with your mortgage.