Home Sweet Home
Why Buying Beats Renting
Posted: June 24, 2020 by Alysia Bauer
Are you thinking of buying but aren’t sure if it is the right move for you? Buying a home is one of the biggest financial decisions you will make in your lifetime and is no small expense. But, there are major benefits to owning a home that you cannot get while renting. Check out these five reasons why we think buying beats renting.
One of the most significant benefits of owning a home is building equity. Your equity is the difference between what you can sell it for and what you still owe. As you pay on your mortgage, your equity increases. If your home appreciates in value over time, you equity will grow as the market value increases.
Purchasing a home allows you to invest in an asset for yourself rather than an asset that belongs to a property management company. When you pay on a mortgage versus paying rent, you are paying towards an asset of your own that you can build equity on. This also allows for you to increase your net worth and store your wealth.
Purchasing a home is a big step in settling down, but with that comes stability. When you purchase a home, you are more likely to move less frequently than renters. You also gain a sense of security. Unless your home gets foreclosed, it is yours until you decide to sell it.
In addition, when you purchase a home, if your monthly mortgage is a locked in rate, your payment will stay the consistent over the years. If your home is in a neighborhood that becomes high demand, the value will likely appreciate. If you are renting in a neighborhood that becomes high demand, your rent will increase to fit the demand. Knowing that you are locked in to a rate that won’t drastically increase give you peace of mind.
Sharing walls with other tenants offers no privacy. Do you want to be kept up from your neighbors television during late hours? Do you want them to hear your toddler having a meltdown because she can’t find her favorite stuffed animal? The privacy from owning a home is priceless. Not only do you have walls to yourself, you also don’t have to deal with landlords having access to your own personal space.
The American Dream
You have the power to turn an ordinary house into your dream home. When you rent, you are basically living in someone else’s home and have to abide by their rules. When you purchase your own home, you have control over just about everything. You can paint, hang shelves, remodel, tear down walls — all things that would likely be denied in a renting situation. Additionally, you wouldn’t be under any pet restrictions. Dogs are a leading reason as to why millennials make the decision to purchase their first home. There are no breed or size restrictions, no deposits and no recurring pet fees.