Why Buying a Home is better than renting?

There are times when it is better for a person to rent, but most often home ownership has many more benefits and advantages.  

I had a neighbor who lived next to our house and but unlike my parents who own our house, the neighbor was renting. The neighbor payed his rent every month as well as my parents payed their mortgage on time every month.

20 years passed and my parents with some extra payments, completed the payment of their house and now own the property free and clear and own a valuable asset with no monthly payment. While the neighbor had to continue making payments every single month.

Later on, he and his wife told me that the biggest mistake they ever made was not to invest in buying a home.  In their retirement years, when their other retired friends were living in homes that were almost paid off and had appreciated greatly, my former neighbor and his wife were using a huge portion of their limited retirement money to make expensive home rent payments. They strongly cautioned me not to make the same mistake they had.

Recent studies are showing that there are many benefits for both the owners and the community for owning your own home, including increased education for children, lower teenage pregnancy rate and a higher lifetime annual income for children. Besides these, listed below are some of the primary advantages for owning your own house. 

1) More Stable Housing Costs

Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period. If the taxes go up, the increase is usually gradual. This stable housing cost especially important in times of inflation, when renters lose money and owners make money. 

2) Tax Savings

Homeowners can be eligible for significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax, as well as many states' income taxes. This can be a considerable amount of money at first, because the first few years of mortgage payments is made up mostly of interest and taxes. 

3) Debt Consolidation

If you need to, you can refinance a mortgage loan to consolidate other debts (an opportunity you don't have if you are renting.) And the interest on this is also tax deductible.

4) Equity

Instead of payments disappearing into someone else’s pocket, home owners are building equity in their own home. This is often one of a person's biggest investment assets.  Each year that you own the home you pay more toward the principal, which is money you will get back when the home sells. It is like having a scheduled savings account that grows faster the longer you have it. If the property appreciates, and generally it does, it is like money in your pocket. And you are the one who gets to take advantage of that, not the landlord. You can then use this equity to plan for future goals like your child's education or your retirement.

5) It is Yours!

When you own a home, you are in control. You the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and threaten to evict you. 

Even young people, like college students out on their own, can often benefit from home ownership. It puts them ahead of other young people their age financially by helping with their credit and giving them what is often an excellent investment. Often a college student buying a home will rent the rooms out, and his or her roommates end up making the payments for the house. When the student is ready to move on, her or she can sell the home (hopefully making a profit) or keep it as an investment and continue to rent it.

Buying a home is an important decision. It is often the largest purchase a person makes in his or her life. And with that the probably the most important financial decision of their life.

When considering home ownership, you need to weight the advantages and disadvantages for yourself.  If you are like most people, you will find that homeownership is worth the risks and disadvantages.

Reasons to Buy a House

1613 Properties
Page 1 of 135
Open 6/23
1149 43Rd Street Orlando, FL 32839
$185,000
Subdivision: Holden Manor
4
Beds
2
Baths
1,356
Sq.Ft.
1990
Year Built
2
Days on Site
O5792441
MLS
This truly charming home in a very quiet Holden Manor community is offered for sale. It boasts both beauty and functionality. From the oversized backyard to its East facing deck, this home provides...
$412,000
Subdivision: Storey Lake Ph 1-3A
4
Beds
2F11/2
Baths
2,655
Sq.Ft.
2018
Year Built
2
Days on Site
S5019501
MLS
Beautiful 2 story family house, 4 bedrooms, 2.5 bathrooms. 2018 year built home with a spacious floor plan with floor tiles on Dining room, Kitchen, entrance hallway, Bathrooms. Property has an open...
$225,000
Subdivision: Willow Creek Ph 04
3
Beds
2
Baths
1,827
Sq.Ft.
1995
Year Built
2
Days on Site
O5792461
MLS
Spacious home, great place to entertain, home featuring 3 bedroom and 2 bath, 2 car garage with eating space in the kitchen, large master bedroom with walking closet, shower with separate garden...
$789,000
Subdivision: Windermere Town
4
Beds
4
Baths
3,268
Sq.Ft.
1955
Year Built
2
Days on Site
O5790336
MLS
Original one of a kind & sure to charm...from the waterfall entry, bougainvillea pergola, custom ironwork & enchanting brick paths & courtyards. This Spanish style home was established in 1955 on one...
$228,000
Subdivision: Windtree West
3
Beds
2
Baths
1,462
Sq.Ft.
1978
Year Built
2
Days on Site
O5792510
MLS
Just listed! Don't miss out on this 3 bedrooms 2 bath home located in the sought after Windtree West community in the Heart of Longwood!
The home features a great floor plan which includes a...
$503,000
Subdivision: Eola North
3
Beds
3F11/2
Baths
1,823
Sq.Ft.
2019
Year Built
2
Days on Site
T3179972
MLS
Under Construction. Life at Eola North means the perfect pairing of a superb central location along with elegant and contemporary upgrades. Located just south of Downtown at the corner of the...
3
Beds
2
Baths
2,129
Sq.Ft.
2019
Year Built
2
Days on Site
T3180243
MLS
One or more photo(s) has been virtually staged. Under Construction. Begin building cherished memories together in the open and bright Arabica. Design the family movie theater or game center of your...
$498,000
Subdivision: Eola North
3
Beds
3F11/2
Baths
1,823
Sq.Ft.
2019
Year Built
2
Days on Site
T3180338
MLS
Under Construction. Life at Eola North means the perfect pairing of a superb central location along with elegant and contemporary upgrades. Located just south of Downtown at the corner of the...
$487,000
Subdivision: Eola North
3
Beds
3F11/2
Baths
1,834
Sq.Ft.
2019
Year Built
2
Days on Site
T3180348
MLS
Under Construction. Life at Eola North means the perfect pairing of a superb central location along with elegant and contemporary upgrades. Located just south of Downtown at the corner of the...
$785,000
Subdivision: Wissahickon
4
Beds
3
Baths
2,489
Sq.Ft.
2019
Year Built
2
Days on Site
T3180420
MLS
Under Construction. A great home design and perfect location all in one! The popular Southhaven design features an open floorplan, four bedrooms, three full baths, upstairs laundry, a study and...
$159,900
Subdivision: Poinciana Village 02 Neighborhood 01
2
Beds
2
Baths
1,008
Sq.Ft.
1989
Year Built
2
Days on Site
O5791806
MLS
Come experience this gem of a home. Tile throughout all of the home NO CARPET here. Pride of ownership resonates throughout the entire house. The same owner has lived there for 24 years and the...
$120,000
Subdivision: Poinciana Golf Villas Condo
2
Beds
1F11/2
Baths
1,157
Sq.Ft.
1980
Year Built
2
Days on Site
O5792431
MLS
Great investment property . This 2 bedroom 2 story townhome in the heart of Kissimmee.
Laminate flooring with high ceilings and out side screened in lanai overlooking the pond. Property located...

Post a Comment