Ahhh, home sweet home. Dorothy spoke the truth when clicking her red shoes together, “there’s no place like home”. As humans, we want a home base, a place we feel grounded and connected. We want this for ourselves, our partner, our kids, and even our pets. It is achievable to an extent when it comes to renting but only to a small degree. The permeance of homeownership dials up this feeling in a major way. This feeling isn’t the only benefit to owning a home; let’s look at some of the benefits of buying versus renting.
As a renter, you are at the mercy of your landlord. No matter how wonderful your landlord is they are still in the business to make money so rent increases are always a possibility, this is something we certainly have seen take place over the last few years. On the flip side, once you close on your mortgage, (assuming it’s a fixed rate mortgage loan) your payment will not increase due to demand or inflation. When you own your home, there is no need to worry about the threat of higher bills every time your lease comes up for renewal.
Additionally, there is no guarantee that your landlord will stick around or that his/her property will always be available. A rental can often feel like it is your home but the reality of the situation is that it isn’t yours. If your landlord chooses to stop renting it out once your lease is up, there isn’t anything you can do about it, you and your family will have to move. When you own the home, you are the one who decides when it is time to move.
Homeownership allows you to fully manage your own house. When I moved into our first house, I could almost physically feel that the restrictions have been lifted! Not only do you have the freedom to adopt all the furry friends you would like but now you can take on those home improvement projects you have been dreaming about. You can paint your walls on a whim, add in that bar top to the counter, or anything else—at the same time increasing the value of your home which will pay off in the long run, something that isn’t possible when renting.
Unlike with a rental property, the money you put into your home can come back to you, either as you increase value from home improvement projects or simply just in the price appreciation that builds home equity. Be confident knowing that the principal you are paying on your mortgage is like putting money in the bank in terms of equity. Also, as a homeowner, you experience tax breaks that others don’t; you may be able to deduct your interest payments and possibly other costs associated with purchasing your home. For information on this, please consult a tax attorney or tax advisor.
Living in an apartment or other rental is the reality for many but for most American’s they list homeownership as a future goal they plan to achieve. However, most who can afford rent can also afford a mortgage payment; this is especially true as we see rental prices increase. So, if you can afford your mortgage, what is holding you back from becoming a homeowner? Learn more about homeownership by visiting our page for the first time home buyer.