The Advantages of Owning a Home
You’ve talked to your friends, your family, and have been watching hours of House Hunters on HGTV, and you’re still not sure if purchasing a home is the right move. Beyond the pride of ownership, there are a lot of advantages to buying rather than renting. While the thought of making the switch might sound overwhelming and scary, the advantages that come with owning a home outweigh the disadvantages. Here’s why.
Renting Has No ROI
While there are benefits to renting, like not having the responsibility to fix major repairs or pay a mortgage, the renter does miss out on advantages that come with owning a home; ROI being the biggest one.
First things first, renting does not provide any return on your investment to live there. Your monthly payments go to the landlord, who then puts that money towards their mortgage.
Often times, when renting long-term, it can be more expensive than paying a mortgage payment. This is because chances are, you’ve completed a few at-home repairs yourself and even helped pay various homeowner expenses. When purchasing a home, you’re investing in your own property, so if you ever choose to sell the house or rent it out, you’ll earn money back to support your next purchase.
A Smart Investment
Unlike purchasing a car that depreciates in value the second you drive it off the lot, a home is an investment that appreciates over time. Each year, the national median home price continues to increase, which is beneficial for homeowners. As you pay off your mortgage, your debt goes down while the value of your house goes up. This is better known as equity or the percentage of your home that you already own.
Homeownership encourages economic growth, which is why the federal government offers tax incentives to those who own a home rather than rent. One of the biggest advantages is the option to deduct interest from mortgage payments on your tax return. PMI, or Private Mortgage Insurance, and other home-related purchases can also qualify for tax benefits.
Long-term renters often lack sustainability because a huge portion of their monthly income goes toward paying rent and other housing expenses that are constantly increasing. When you buy a home and lock yourself into a mortgage payment, you can budget your income better, allowing you to save more money for other expenses, future plans, or retirement.
Not only does owning a home increase sustainability, but it also increases stability. Moving from rental to rental is not only inconvenient and emotionally draining, but it also adds up financially. If your lease ends and you have to look for a new place to rent, you have no idea how much it’s going to cost and what kind of new challenges will arise. Living in the same home allows you to get comfortable in your daily routine and become more involved with your surrounding community.
Make Your Space Yours!
When you rent a home, you don’t have a lot of options for modifying the space to fit your lifestyle or favorite decor trends. But, when you own a home, you have the freedom to alter the space to fit your wants and needs. Whether it’s small furniture changes or big kitchen remodels, when you own your house, you can do whatever you want to it. The more at home you feel in your space, the better.
It’s no secret that buying a home is a significant commitment that needs to be well thought out, but in the long run, it’s worth it. From tax benefits and gaining property equity, to genuinely loving the space you live in, the advantages of owning a home are well worth it. If you’re at a place in your life where owning a home is an option, consider these advantages to help you make the right decision for you.