A large part of the American Dream usually involves owning a home, but in recent years homebuyers have been much more hesitant than in the past. Potential buyers, especially in the younger generations, seem to see the bigger price point of a house and backoff because of that, thinking that the monthly rent they might be paying is more reasonable. This isn’t typically the case, and there are many other reasons why owning a home is more advantageous than renting.
It’s YOUR space
When renting a house, there may be certain things you can or cannot do with that property. This is because you don’t own the property, you’re just renting it out from another person or business. When renting a house, your landlord may not care if you decide to do minor renovations, such as painting, but beyond that you might not get much more customization or freedom. You may also have a pet, and it can be hard to find a property to rent that allows you to have pets. When you own a home, those problems get thrown out the window. You have complete control over your living space, with nobody to tell you otherwise.
One of the largest benefits of buying a home over renting are the tax benefits that come with owning a home. When you buy a home, you can deduct mortgage interest on your federal income taxes. On top of that, there are other eligible expenses such as energy-efficient improvements or closing fees. This top five reasons to buy vs rent article from Zillow.com gives a good example of the kind of deductions a homeowner can get when they file their tax return.
Buying a house is cheaper in the long run
In the long term, buying a house will always be cheaper than renting. As time goes on, rent prices will rise due to inflation, where as if you get a fixed mortgage rate (which I recommend), the mortgage will not. In addition to the fact that your mortgage will not rise, since you can take advantage of the tax benefits of being a homeowner you’ll get money back which will cause the overall amount of money you spend on purchasing a house to be lower than if you were to rent. On top of that, real estate values tend to rise over time. This means that one day you could potentially make some money off of that house, if you were to ever sell.
When it comes down to it, there are infinite reasons why buying a home will benefit you more in the long run than renting will. Renting can be much simpler, so it’s easy to see why so many people just rent instead of buying, but there are unique advantages of being a homeowner that they’ll never be able to use! Take the time to do the research and find a home you’re happy with, and you will not regret it.