Advantages of Buying a Home vs. Renting
One of the most significant decisions that anyone can make in their life is buying a home. Renters often wonder, “what are the benefits of buying a home vs. renting?” There are many reasons to buy a house rather than rent, one of which is being an excellent long-term investment. If you are planning on living in the same property for a few years or more, you may want to consider buying a home rather than renting.
You may be thinking to yourself, “I don’t think I financially can buy a house right now.” Just because you may think you can’t buy a home, does not mean that’s true. More and more millennials today are seeking out the benefits of owning a home. Taking advantage of the benefits below may have a positive impact on your long-term financial health.
Build Equity in Your Home
Paying your monthly mortgage payments is like buying a house on installment. Each month, a little bit more of the house belongs to you, and a little less belongs to the bank. At the end of the mortgage, you will own the asset free and clear. When you are renting, you are not building equity and there is a possibility that your rent may increase at the end of your lease.
Take Advantage of Tax Deduction Opportunities
When you own a home, you can deduct the interest on up to $750,000 of debt used to acquire or improve your home.
Have Stable Monthly Mortgage Payments
One of the other advantages of buying a home vs. renting is having stable monthly mortgage payments. If you choose a fixed-rate mortgage, the monthly payment is locked in for the entire life of the loan. Renting is different. Tenants are at the mercy of their landlords, and rising rent over time is a fact of life in most areas.
Have the Freedom to Enjoy your Home
When you own a home, you have the freedom to make improvements or alterations to your property as you please. Your home will truly feel like home, as you can put your personal design touches on each room. Additionally, making improvements or alterations may improve the home’s value over time.
There are plenty of advantages to buying a home vs. renting which you may benefit from. Make your dream of owning a home come true.