7 Reasons Buying Is Better Than Renting
To buy, or to rent. Which do you choose? More and more people are opting for the latter. In 2016, the Pew Research Center found that 65% of households headed by young adults were renting over buying. However, the top regret of renters was that they had not purchased a home. We don’t like to see anyone filled with regret, so we’ve compiled a list of seven reasons why buying a home is better than renting.
The moment you start making payments on your home, you build equity. Although not everyone has the financial means to afford their own home, buying is an investment; renting is not. Check out this free rent vs. buy calculator from Freddie Mac to see how your rent stacks up compared to purchasing a home.
Easier to own a pet
Keeping a Labrador in a 650 square foot apartment is about as ideal as it sounds. When you rent, especially if the unit has little to no yard space, it can be quite difficult to keep your pet happy and healthy. And that’s if your landlord allows pets. Many don’t, and if they do, expect to pay a hefty monthly fee and pet deposit. Buying your own home likely means you’ll have adequate space for your pet to play. So, if a furry friend is an important part of your future, it might be time to take another look at buying.
Buying = tax credits
High mortgage payments will seem much less daunting once tax season rolls around. When you become a homeowner, you’re entitled to tax deductions that can help reduce your tax bill. Even after the recent tax overhaul, you can still deduct interest on the first $750,000 of a mortgage. From energy credits to IRA tax exemptions, there are plenty more additional tax breaks you become eligible for when using the withdrawal as part of your down payment.
Make money from renting out your home
If you travel a fair chunk of the time for work or pleasure, or you simply have available space that’s gathering dust, renting out a room on Airbnb or a similar site can be a great way to make some extra cash. However, if you live in an apartment, it’s much more difficult to do. For many landlords, renting out your apartment is grounds for eviction. If you have your own home, you are the sole decision maker and have the agency to choose or forgo this option.
Tired of moving? Growing your family? Need to get away from your roommate? At some point, you’re going to want to settle down. Owning a home may take more work than having a landlord to call, but there is definitely more stability in ownership, and you won’t have to deal with apartments jacking up rent or roommates moving out.
Apartments are noisy
One of the biggest downfalls to renting, especially when you’re in a large apartment complex, is the noise. Whether it’s the creaking of your upstairs neighbors on the hardwood floor or the Shih Tzu barking down the hall, distracting sounds can really affect your quality of life. When you own your home, you might be close to neighbors, but you will never again be woken up by stomping feet above your head.
You can decorate!
Owning your own home means finally getting to implement all the amazing projects you’ve seen on HGTV or Pinterest. When you rent, you’re often limited in the changes you can make to your space, and you can even be penalized for doing so. Renovating your own home only adds to its value, so it’s a win-win.
Owning a home can truly change your life. If you’re interested in making this major life step at some point, contact one of our licensed Loan Officers – they can walk you through the ins and outs of the home financing process, and help you determine the options that are best for your situation.