Should I Buy or Rent
Buying a home versus continuing to rent is a common dilemma that many people face. One thing to consider is if owning a home was a bad idea why would so many people buy a home? Simple question, simple answer: because owning a home is a good idea for most people.
The question and answers about whether home ownership is a good idea are simple but profound. If you are sitting on the fence about whether to buy or continue to rent then perhaps the following will give you something more to think about if you have not already thought of these things.
The Benefits of Owning A Home Versus Renting
Owning A Home Provides Roots And A Strong Foundation For Your Family
Home ownership gives you a place to call your own. There is a sense of pride in owning a home. Many studies suggest that homeownership adds to the morale and positive upbringing of children. Owning a home lends to becoming part of a community.
Homeownership Can Reduce Your Housing Payment
Depending on the size of your mortgage payment versus your rent payment you can save money with your mortgage payment. What makes this possible is the benefits you get as a homeowner and being able to write off your mortgage interest and real estate property taxes. In addition, if you make energy efficient home improvements you can realize additional tax credits that you cannot get as a renter.
Steady Payments For Life
As a homeowner, with a fixed rate mortgage you know what your housing payment will be for life if you keep your mortgage for the full 30 years. As a renter, it is difficult to say what your rent will be from year to year, but the trend has been over time for rent payments to go up unless you are lucky enough to live in an area that has rent rate restrictions.
Build Long Term Wealth For You and Your Family
This only applies if you keep your mortgage long term, do not refinance and take cash out of your home. This benefit to homeownership got lost over the past few years as many people who are now facing foreclosure lost equity in their home for a variety of reasons (discussion of this is beyond the scope of this article). But in general, if you keep your mortgage long term you will pay your mortgage down to where you build equity in your home. Eventually if you sell your home you can cash in on your equity. Also, if you are careful about how you use your equity, you can use it to help you build other investments and wealth well beyond what you can do as a renter.
Hopefully these four benefits of owning a home provide you with something to think about as you decide for yourself whether homeownership is right for you and your family. Visit a Rent Versus Buy Calculator