The benefits of buying versus renting can be huge!
There are many articles and many opinions on this topic. Buying versus renting, we have compiled some key factors to help consumers understand a little better. Below are some benefits of buying versus renting that we hope helps you!
Buying a home is part of the American dream, a new generation of homebuyers is treading more carefully when making a decision.
While renting is more flexible, buying a home has the potential long-term payoff, with tax advantages and many other benefits. Comparing the costs of buying are more varied and complicated than for renting, so it’s important to look beyond just the numbers when making your next move. When you own a home it’s yours and the money being paid monthly doesn’t go to waste.
Although it’s better to rent if your plans are uncertain, that kind of flexibility comes with a price. It’s harder to feel established in a neighborhood if you aren’t a homeowner. Due to not committing to a long-term stay. It’s exciting seeing new homeowners settle into a community. You have the right to paint the bathroom or put in a garden without asking permission.
Home Ownership is a Savings Account
There’s no place like home, especially if you own it. It’s true even if you only have eyes for the bottom line. When you buy a home, you enroll in a savings plan. No matter how tight your budget may be, you find the money to make your monthly mortgage payment. Allowing you future benefits while paying, you build up equity. That assists you in building wealth and having the future ability to re-mortgage and invest in other areas.
As anyone who has rented a home knows, rent hikes are the norm and often out of your control. If you’re in an area without rent control, the landlord can raise the rent whenever he or she likes. Putting you in an unfair advantage as a renter and the market. If you buy a home and take out a fixed rate mortgage, your house payment stays the same for the life of the loan, whether it’s 15 or 30 years. That allows again more stability and options for your future and budgeting plans.
Buying a Home Costs Less
Buying is the cheaper alternative over the long term. If your mortgage is initially more than you’d pay in rent, you’ll spend less over the life of the loan if you buy. Renting costs can be raised over time, changing the finances. Also, given the tax benefits of home ownership, your true out-of-pocket costs from day one can be less than if you decided to rent.
For more information contact us RDC Affiliates of Allison James and Estates