There are definitely times in life when renting makes sense, but the advantages and benefits to home ownership far outweigh renting.
There are five primary advantages for owning a home.
First, Stable Housing Costs
Rent payments are so unpredictable and typically rise annually, but most mortgage payments remain unchanged for the entire loan period. If the taxes increase, the increase is usually gradual. During times of inflation this is especially important when renters lose money and owners make it!
Second, Real Tax Savings
Homeowners are eligible for many tax savings due to the fact that you can deduct mortgage interest and property taxes from your federal and state income tax. This can be a considerable amount of money at first, because the first few years of mortgage payments are made up mostly of interest and taxes. We are talking about a great deal of your hard earned money staying in your pocket- not only are you building equity, investing in your future, but have more working capital for other things.
Third, Consolidation of debt
Did you know that you can refinance a mortgage loan to consolidate other debts? (an opportunity you don’t have if you are renting.) And the interest on this is also tax deductable.
Fourth, Investment and Equity
Instead of rent payments disappearing into someone else pocket, home owners are building equity and investing in their own home! Year after year the more you pay toward the principal, the more money you get back when the home sells. It’s like having a scheduled savings account that grows faster the longer you have it. If the property appreciates, and it generally does, literally you are placing more money in your pocket. And you are the one who gets to take advantage of that, not the landlord. Why not use this equity to plan for a future goal like your child’s education or your retirement?
And Fifth and best of all – It’s Yours!
When you own a home you are in control! Paint, decorate, landscape, entertain when you want, get that dog you always wanted. Build a fire pit in the backyard, plant some trees- mow the lawn! Do whatever you want because you own it, not the landlord.
So, why rent when home ownership holds so much more value?
For more insights and resources for buying or selling a home visit AdvantageU – Home Sellers Resource.