Why Buy a Home When You can Rent?

Renting a home has its advantages: you can move without selling a home first; you don’t have to make the repairs, nor do you have to pay property taxes. But something is missing. You lack a sense of security and ownership, or maybe it’s just the simple fact that the money you work hard to make is thrown into the wind as rent payments each month.

Whatever the case, you’re now in a spot where you want to take a step away from renting. But, you also wonder if there really are advantages to owning a home. Let’s explore the advantages.

Home Ownership Has Tax Advantages


You may be able to exceed the standard yearly deduction, since the U.S. government permits tax incentives for homeowners. Check to see if your state offers that benefit.

You receive a tax deduction for the yearly interest on your primary and vacation home – equaling a large amount of your total payments for the first several years.

You can deduct the total amount of your yearly property tax bill.

If you choose to refinance in order to consolidate other debts, your home equity loan interest is tax deductible.
Homeowner’s Cost of Living Is More Stable


If property taxes and insurance go up, your monthly payments may as well, but the increases happen gradually.

Renting fees can often be more unpredictable.
Your Investment Appreciates


Most real estate increases value over time. If you carefully select your home and treat it well, your home will be worth considerably more in just five years.

Your first investment in the house may be small, even three percent or less, but as the home appreciates in value, you are the one who benefits – not the bank, nor your landlord.
Each Month Your Equity Grows


Even if the first few years of monthly house payments primarily cover interest, you are also paying more towards the principal amount each month.
You Have Control


The house is yours.

You can paint and decorate it as you wish.

You can put nails in the walls and hang pictures and artwork wherever you desire.

You can have a pet without consulting anyone else.


Stay tuned for our blog post tomorrow... To Rent or not to Rent?