Why Buying a Home is Better than Renting
1. Long-term, Buying is Cheaper than Renting
Rent is money that you cannot take back. When you are renting a home, you are making monthly/annual payments for a property that you don’t own, which means that you don’t build equity.
A home is a major purchase and can be initially expensive, but if you consider the fees that come with renting, buying and owning a home will ultimately be cheaper.
In a lot of cases, buying a home can be comparable in cost to renting, considering the rates. And of course, paying off a property that you own is way better than paying off someone else’s asset.
2. Buying a Home allows you to Build Wealth over time
Having a house of your own is a smart way to build lifelong wealth. A home is a valuable asset – worth more than just simply having a place to live in.
Real estate properties have been known to increase its value over time or appreciate. No other asset can build your wealth more consistently. When you rent, you are building your landlord’s wealth, and not your own.
Combined with leverage, real estate appreciation can offer big returns. For instance, if you purchase a property worth $300,000 and it appreciates to $320,000, you have already made a 10% return on your property.
3. Buying a Home lets you lower your Living Expenses significantly in the long run
For a lot of people, the idea of living mortgage-free or rent-free someday is very attractive. This is not something that you will be able to do if you are renting a home.
Of course, you will still need to be responsible for paying property taxes and insurance, but that is a minimal expense compared to the costs of renting a home.
4. You have all the power to make it your Own
Do you have a bathroom or kitchen that is in need of an update or a refresh? It’s your call – if the house is yours.
Owning a home allows you to do whatever you like with it – from repainting the walls to full remodels. The flexibility that purchasing your own home provides is a seriously appealing aspect to many. If you own your home, you have the freedom and full control to do what you want with it without having to worry about extra fees, lease contracts, terms, and other costs associated with renting.
5. Buying a Home gives you Stability
Many homeowners will agree that the privacy, peace, and stability of owning a home is beyond price. Purchasing a house means that your children will always have a place to call their own, the opportunity to go to school in a good district, and friends who live nearby.