Basics of Property Management: Screening Potential Tenants

The Top Reasons You Should Buy A Home Instead Of Renting

4 September 2019

Jesse Obrien

For some people, it's more a question of if they can afford to buy a home instead of renting rather than if they want to or not. You might be one of those who has the option to either buy or rent your next home. There are good reasons that buying a home makes more sense in the long run.

Here are the top reasons you should buy a home instead of renting.

Control Over The Property

One of the top reasons for home buying instead of renting it is that you have complete control over what you do with the property. This means, if you want to add a pool into the backyard or deck, you can. You can also paint your living room or the kid's bedroom any color you want without having to ask a landlord or having to paint it back to the original color when you move out.

You can renovate your kitchen, pull up rugs and convert to hardwood and so on. When you rent, you need to get permission to do many things or you must comply with whatever the homeowner or building owner wants.

There Are Tax Benefits

When you own a home and pay a mortgage, you will receive certain tax benefits. When you pay rent, chances are you won't receive any tax relief on that amount. However, when you pay a mortgage and insurance, a portion of that is tax-deductible, typically the interest paid on it. In the long run, this tax savings can add up to a lot of money and make it cheaper to buy rather than rent your home.

Investment And Appreciation Benefits

When you rent a home, that money goes to the owner of the property and you never see any of it again. When you buy a home, however, the more you will pay toward the actual mortgage loan and the less to interest over time. This means you have more money you have access to should you need to take out a loan to pay for anything,

The home will also appreciate in value over time, which means the money you put into it will increase should you ever decide to sell. You will never get any money out of renting when you leave the property, but a home will be worth more once you sell it.

Mortgage Payments Stay The Same

When you pay rent, that amount increases every year. When you buy a home, if you have a chosen fixed-rate mortgage, that amount will stay the same for the duration of the mortgage. It will never go up. This means you can save money and don't have to worry about paying a higher mortgage every year as renters do.

Property insurance and taxes do tend to rise slightly each year, but it will still save you more money to buy a home, than it will to rent.

Share