Why Owning Is Better Than Renting
Thinking about finding a new place to call home? Then, you may want to pump the brakes and consider the advantages of owning as opposed to renting.
According to Pew Research Center, nearly 37% of Americans rent their homes. That’s the highest percentage in more than half of a century!
But, should Americans shy away from renting? The statistics say “YES”! Here’s why:
IT’S CHEAPER TO BUY A HOME
Yes, down payments are a major obstacle for many folks, but once you jump that hurdle it’s actually less expensive to own a home. According to real estate website Trulia, a mortgage is 38% cheaper than renting. That’s a lot of extra money considering renters don’t actually own their residence.
YOU CAN BUILD EQUITY
If you take care of your home and continue to make payments, the value will soar. A house is often the most valuable asset a person owns. If you play your cards right, a house will appreciate in value and offer a large return on investment. However, if you’re renting that money goes straight to the landlord!
IT BUILDS YOUR NET WORTH
People probably won’t be searching for your net worth on Google anytime soon, but building your net worth opens up more financial opportunities down the road. Home ownership is a surefire way to store wealth without needing a bank.
THE PRICES ARE MORE STABLE
If a landlord decides to raise rent prices, the burden is on the tenant to pay up or move out. Home ownership offers more flexibility because the price is set and loans can be re-financed.
YOU CAN SETTLE DOWN
It’s difficult to put down roots in a community if you may not live in the same place a year from now. A house gives people a permanent residence, which allows them to build social ties with the community around them. That’s great news for families looking to grow their social circle.
THE PRIVACY IS UNPARALLELED
Living in an apartment complex does not offer much privacy. Often times, units are crammed together in large buildings. Even if you somehow manage to rent a house, the landlord can barge in at any moment. But, if you own a home, only you can come and go as you please! Plus, you don’t have to worry about any noise or drama from neighboring apartments.
IT SAVES ON TAXES
A home does come with a lot of hidden expenses, but a lot of those costs are tax deductible. Property taxes, insurance premiums, interest paid, and energy-efficient additions can all be deducted from your taxes. That’s a benefit renters do not have.
THERE’S MORE SPACE
It’s true! You get more space for your money when it comes to owning a home.
YOU CAN HAVE PETS
Sure, maybe this one seems minuscule, but some folks don’t have the option of owning pets. With home ownership, you are the King or Queen of your own kingdom — and you may want some four-legged royal subjects!