Is is better to Own vs Rent a home? What questions should you consider when deciding whether or not to purchase a property?
While there are numerous arguments in favor of property rental, there are even more advantages to owning property. In what follows, we will present 11 of the most important ones:
- Buying a home is an investment that provides you with equity, too. If you buy property, even if your down payment is small, the mortgage repayment you make each month will increase the equity you have, until it reaches 100% at the end of the repayment process.
- The amount of your monthly mortgage repayment is equal or very close to the sums you would pay for renting a home.
- Tax advantages – mortgage interest rates are deductibles, while rental fees are not. If you make a calculation of your tax savings, you will see that having your own property, even if there is a mortgage on it, is way cheaper than renting.
- Emotional value – there is no feeling comparable to the sense of freedom and security that comes with owning your own home. Accomplishment and the pride of having achieved your goals is also something that people living in rented properties will not know.
- Financial security and stability – strange as it may sound, having your own property, even if you have a mortgage on it, offers more financial stability than rentals. Rents can be modified, usually increased, as the landlord pleases; with your own property, you can calculate and predict exactly how much your home-related expenses will amount to each month.
- If you live in your own property, you can make changes to it any time you want. With rented properties, even painting the walls into a different color must be approved of by the owner – if you live in your own house, you don’t need to ask for anyone’s approval to make changes.
- Becoming part of a community – becoming an owner of a property you become the member of a local community, too. You can make new friends, engage into community activities and enjoy all the benefits of the neighborhood.
- Independence in maintenance – if you rent a home, housing maintenance is the responsibility of the landlord. Provided that the landlord is indeed a responsible owner, this is not necessarily a bad thing, but if maintenance tasks are neglected, living in the home can become uncomfortable. If you live on your own property, you can hire the contractor you want and you can schedule the maintenance tasks when it is the most convenient for you.
- If you own a property, you can choose to live in it or you can rent it out and become a landlord yourself, in which case the property will generate income for you.
- Being a responsible homeowner who pays the monthly installments on time will improve your credit profile and your credit score.
- Owning property makes you eligible for numerous bond refinancing options, allowing you to withdraw larger sums, should you want to make new investments.
As you see, owning property has numerous benefits, financial, practical and emotional alike – find your dream home and surely you will be able to find the financial way to obtain it and benefit from all the advantages of home ownership.