The great debate; owning your own home versus renting a home. There are pros and cons to both, but only you can decide what makes the most sense for your family. Here is some information to help make your decision easier.
Probably the greatest pro to owning is that you are building equity. When you pay your monthly due to live in your home, it’s nice to know that your money is going somewhere that’s useful to you. When you pay on your mortgage, that money is being put towards truly owning your house, with the goal of one day paying off your mortgage and owning it free and clear. But even if you decide to sell your home before the loan is paid in full, some of that equity (from monthly payments) is credited to you when you sell your home. With renting this isn’t so. Your monthly dues go directly into someone elses pocket, never to be seen by you again. So the question is, are you interested in investing in your families future or someone elses.
Comparing Buying vs Renting
|Building equity||No return on your money|
|Freedom to make cosmetic changes (painting, landscaping, changes to fixtures, etc.)||By rental owners permission only and it typically has to be returned to original condition|
|If you do not qualify for assistance programs, many home buyers have to save a reasonable amount of money to pay for expenses during the mortgage process||Security deposits, pet deposits, and often first and last months rent are often required up front|
|Ability to make structural changes, such as remodeling bathroom or kitchen||Rarely would an owner allow this, and only at your expense|
|Fixed loan rates will keep your monthly mortgage from rising in price||Over time inflation will raise your rental amount. Rental owners also have the right to raise rent when the lease expires|
|You do all your own home maintenance, unless home is new and covered by a builders warranty||Landlord takes care of all maintenance unless it’s the renters fault|
|You can receive significant tax deductions for paid mortgage interest and property taxes||No tax benefits|
It’s the best choice
As you can see there are advantages to both owning and renting. Owning a home is one of the biggest purchases and greatest investments you will ever make. It’s certainly worth making the decision to buy, when you’re ready. There’s nothing like the satisfaction of knowing that you’re not just spending time in a house, but living in YOUR OWN home.