Why You Should Be Buying (Not Renting) Your Home
Posted by Eric Skates on
Many people are stuck between the option of whether they should rent a home or buy one. While there are pros and cons to both renting and buying, but in the long term, it's been proven that buying is the better bet rather than renting.
Many people may be left asking one question: What advantages are there to buying your home?
The following are some reasons that you should be buying your home rather than continuing to rent:
This is probably one of the biggest reasons to purchase a home. A home is an asset that generally (not always) will appreciate (gain) value over time. Appreciation will largely depend on several factors, including the local housing market and the area you live in, however, generally speaking, homes are an asset that will appreciate at a value of is about 5.4% across the US from the years 1968 - 2009 according to the National Association of Realtors.
If you are renting a home, you will not be able to take advantage of the appreciation of the home as you do not own it.
The US Tax Code allows homeowners to get certain tax benefits the fact that you can deduct any interest you pay on your mortgage from the taxes you pay each year as well as on your property taxes. You also are able to write some of the costs of purchasing a home off of your taxes as well.
Owning a home allows you to build equity with each mortgage payment you make. If you are renting a home that is money you simply will pay and never see again. In the long run, paying mortgage payments on your own home is a far better option as it lets you build that equity and allows your money to work harder and smarter for you.
Predictability Of Housing Costs:
Insurance rates on mortgages (unless refinanced) are generally fixed, so you know how much you will be paying for housing, not just now but for the duration of the life of your mortgage. This can help balance budgets, whereas rent can raise as costs of maintaining the property raise. All that has to happen for rents to raise is for the landlord to give notice according to your lease and you may be paying a lot more than you can afford to live in the same quality of a home.
Freedoms Within Your Own Home:
When you own the home, it's yours to do as you wish. Whether you choose to paint a room in your home, remodel your home, redo the landscaping, or own a pet, you are free to do what you wish in your own home. That's not the case when renting. Everything will have to be approved by the landlord, and if you want to do something against your lease, you will be responsible for violating a lease. In your own home, you can do as you wish and that freedom is what many people strive for.
Many times people who are renting will have a landlord decide to sell the property or take it off the rental market, even if they are not ready to move. Long as the appropriate amount of notice is given, as specified in the lease, the landlord has the right to do that. This may leave you without a place to say. This can cause not only inconvenience, but insecurity as to where you may go next. When you own the home, long as you are paying your mortgage, you have a sense of home security that you may not have in a rental property.
In the end, this proves that the benefits of owning a home are far greater than those of renting. Renting may be appropriate if you are in a situation where you need a place to stay while looking for a home to purchase, however, you want to rent for as short of a period of time as possible. Owning your home is ultimately an investment in yourself and in your future versus renting a property means you pay money that you will never see again after that payment is made.
So, take the opportunity to purchase yourself an affordable home when the opportunity arises. It not only provides the benefit of convenience, but it also is an investment in yourself, your family, and your future! Click here to get started today!