Buying Versus Renting
Every day many people debate whether they should buy a home or continue renting. Although there are some positives to renting a home, most often, the benefits of owning your own home fully outweigh the positives. Below are some of the major benefits of buying and owning your own home.
Buying a home provides a tax shelter
For most people (please consult your tax advisor) all the mortgage interest and property tax you pay on your home is fully deductible from your federal income taxes. This could save you thousands of dollars a year.
When you rent, your monthly rent goes to line someone else's pockets. However, when you own your own home part of your monthly mortgage payment goes to paying off the principal on your loan and increasing your equity. In addition, as the prices of homes appreciate so does your equity. With double digit increases in home prices in the past few years its no wonder that most American's have the bulk of their wealth in the equity of their home. As your equity increases you can get a second mortgage on that equity to remodel your home, pay for college, buy a car, or purchase many other things that you couldn't do if you were renting.
Personal freedom and stability
When you own a home you decide what to do, if you can have a pet or not, what you can grow in the back yard, how to decorate, etc. All of these things are limited with a landlord. Also, by owning a home you won't have to fear getting a 30 day notice to leave thus turning your life upside down. When you own a home you decide how long to live there and when to move on.