It was not even 10 years ago when the stock market, and subsequently the housing market, were at lows comparable to the Great Depression. Fast forward a few years and houses are flying off the market left and right. It is a great time to buy in most cities across the country, and there are many benefits to owning a home that you just can’t get from a renting.
When you are renting, you are really at the mercy of the landlord when it comes to what you pay each month. While they do need to notify you of rent increases, the increase is most likely brought on by the average rent in the area going up. So if you do look to move out, you may not find anything better in your search. When you own a home, you are on a fixed mortgage, and you know what you will be paying from now until that mortgage is paid off.
As a homeowner, you are entitled to certain tax deductions at the end of the year. When you are renting, you never see any of your rent come back to you during tax season. For a list of what you can and cannot claim on your taxes, visit my previous blog post.
Make it YOUR Home
One of the biggest perks I found in home ownership was the ability to customize my home the way I wanted it. From the colors on the wall to what is on the floor and everything in between can be dictated by you. If you want to knock out a wall to turn two rooms into one room, you have the freedom to do that when you own your home.
The longer you own your home, the more equity you will have. When you get to 20% equity you are eligible for a refinance or a home equity loan. As a renter, the money you are paying in rent each month goes to your landlord and you never see it again.
As a homeowner, you can now be the one who charges rent if you feel so inclined. Renting out a spare bedroom, or renting out an entire house in the case of an unforeseen location change is a great way to (usually) bring in some extra money each month.
While there are pros and cons to every purchase you can make, the benefits of owning a home greatly outweigh the negatives of home ownership. Furthermore, owning a home is worlds above renting when it comes to what you get back on your investment.