If you’re in the market to buy your first home, you might be wondering if it makes more sense to rent or buy. While owning a home can cost you more each month than renting, there are several reasons why buying is better than renting in the long run and why it may make sense to use the benefits of homeownership instead of continuing to pay rent to someone else who doesn’t care about your investment as much as you do! Check out these ten reasons why buying is better than renting!
Reasons Why Buying Is Better Than Renting
There are many good reasons why buying is better than renting. Perhaps you want to stop wasting money on rent, or you’re tired of living in your cramped apartment and want some space for your family. Read the reasons below.
No matter why you become a homeowner, one thing is sure: real estate appreciates over time, meaning that purchasing property will increase its value. If you decide to sell later down the road, you’ll recoup your investment—and then some!
While real estate can be tricky to manage, it’s generally believed that people who own homes build wealth over time. When you rent, your landlord gets all your property tax benefits, and you could have thousands in capital gains taxes when you sell your home. In contrast, mortgage interest is tax-deductible (subject to some limitations), which means that if you keep your mortgage for 15 years or more, you’ll pay much less in taxes than someone who sells their home every decade.
Save on taxes
As homeowners, you can deduct your mortgage interest and property taxes on your income tax return—and if you own your home for at least three years and use it as your primary residence, you can qualify for up to $250,000 tax-free profits from the home sale. For renters, on the other hand, landlords are often responsible for paying property taxes.
If you’re renting an apartment or home, you’re at your landlord’s mercy for repairs and maintenance. Or, if they don’t fix something, you have no recourse. They can even raise your rent excessively; you can do nothing about it.
Property value keeps going up
Reasons, why buying is better than renting, brings more value, buying your own home is one of the best investments, but it’s more than just looking at homes in your budget and comparing how much they cost. As time goes on, your home will gain in value as long as you continue to pay down your mortgage each month. Once you’ve paid off what you owe, your property will be worth twice (or even three times) what you originally paid.
Plenty of options
If you don’t have enough savings to afford a down payment on a house, or if you prefer to stay in one place for only six months, buying may not be suitable for you. The same can be said if you tend to move every year. If that’s your case, then renting is probably your best bet.
Flexibility to make changes as your life changes
You may be stuck if you live in an apartment and suddenly need to care for elderly parents. However, if you own your home, changes like these will cause less stress because you won’t have to worry about losing your housing payments if it becomes necessary to move in with your family. This is why buying is better than renting because Buying your own home provides security many renters don’t have.
Opportunity to invest in high-quality items.
Buying something means passing it down to your kids, using it as collateral to borrow money, or even selling it if you need extra cash. On top of that, items bought years ago will only increase in value.
The advantage of owning your home is that you can personalize it as much as possible. Want to paint your walls? Go for it! Add floor-to-ceiling bookshelves? Ditto! The same goes for rooms inside your house, allowing an added sense of comfort, control, and ownership. Whether or not you plan on staying in one place permanently, there’s something to be said about having roots—and being able to take care of those roots.
Move when you want, not when a landlord tells you to
Homeowners can live in one place for their entire lives, but renters risk being told to move. When you rent, you’re essentially giving your landlord an indefinite lease on your time and money—and in most cases, there is little you can do if they want to get rid of you.
Even if you love your apartment or house, there’s no guarantee that you can stay there forever. By purchasing, you gain control over your space and how long you live there—no one can kick you out as long as you make your mortgage payments on time. Buying also ends all those headaches about leasing renewal and getting caught up in market cycles. When markets are reasonable, it may seem like it makes more sense to rent; these are ten reasons why buying is better than renting!