Renting a home has never been a financially sound choice to make. It is the option that many people opt for simply out of the necessity of the moment or because they are unaware of the downside implications of that choice. I want to show you now why owning a home is a vastly superior choice to renting your living space.
Building Equity
Renters are simply paying money to a landlord each month with nothing in return other than a place to stay for one more month. They never gain any equity in the property that they spend so much of their hard-earned money on, and they are always in danger of increased rental rates year-over-year. Those who choose to buy a home instead begin to immediately reap the benefits of doing so as soon as they start making their mortgage payments. They begin to take an ownership stake in their home, and that helps them to build generational wealth.
Tax Savings
The government offers tax savings to homeowners through a number of breaks. Homeowners are allowed to deduct the interest they pay on their mortgage from their taxes if they itemize those taxes. This is seen as a way of encouraging people to buy homes instead of renting. The government has a vested interest in getting more of the population to purchase homes, and this is one of the ways that the public is incentivized to do so.
Asset Appreciation
The value of most homes rises over time. This benefits the homeowner when they go to sell the property. Renters never get to see any of the value that their property adds as time goes on because they do not have any equity in that property at all.
Non-Monetary Benefits
Most people think only of the bottom line when it comes to the difference between buying and renting a property, but that is not the only factor. Non-monetary benefits such as increased happiness with life have been shown to be part of purchasing a home as well. Those who buy their homes have a tendency to remain in those homes for a longer time than those who rent. This can help a person “put down roots” so to speak and become more connected with their neighbors and their community. Sadly, this often does not happen for renters.
Please contact me for the latest about why buying a home makes far more sense today than does renting one. You might just be surprised by how much of a difference it can make.