Rent vs. Own: 7 Reasons Why Homeownership is Better Than Renting

Homeownership is usually considered a better alternative to renting, thus the reasoning why many people call it the “American Dream.”  I think that both have their advantages and disadvantages,  but in this post I will cover 7 reasons why homeownership is better than renting…

1. Homeowners can customize their property

As a homeowner, you can customize your property any way that you like.  You can paint, add a patio, remodel the bathrooms, put in new flooring, and more.  Most landlords would not allow you to do this, but being a homeowner gives you the right to do it.

2. Homeowners get tax benefits

Mortgage interest and property taxes are tax deductible.  You can also qualify for energy efficient deductions, home office deductions, and more.  Plus, if you own your home for 5 years, you can pretty much avoid federal taxes on the sale of your house.

3. You don’t have to deal with a landlord anymore

This can be a good advantage if you have dealt with bad landlords in the past.  You now have control over the privacy of your home and can maintain it the way you see fit.  If something goes wrong, you can control who to call and how fast you want them out (of course, you now have to pay the bills for that service).

Also, a landlord cannot ask/force you to move from the property.  When you own your own home, you have certainty about your living arrangements.

4. Owning a home forces you to save

There is an argument out there that owning a home is like forcing yourself to save.  A portion of your mortgage payment every month goes towards the principal of your house.  Whenever you sell the house, you can access all that equity that you have built up over the years.

5. A fixed mortgage won’t raise in times of inflation

If you have kept up with the economy, you may realize that inflation is the norm nowadays… and it looks to get worse before it gets better.  For the most part, inflation raises the cost of living, but not with your mortgage.  If you have a fixed mortgage, your payment will stay the same, regardless of inflation.  Renters cannot have the same guarantee with their payment.

6. House values usually increase

There is a good chance that your house value will increase over time.  If anything, it should increase to keep up with inflation.  If this is your only reason to buy a house though, beware.  House values also have the possibility of decreasing, as many have seen in other areas of the country.

7. Limited Payments

If you live in your house long enough, you can eventually pay off your mortgage and not have to worry about house payments anymore.  It could take 30 years (with a 30-year mortgage), but it is better than paying for the rest of your life in a rental.

Photo Credit: “Housing” by james.thompson on Flickr.  CC Licensed.

About Matthew Loewen

I'm a real estate broker in Clovis, New Mexico. I started my own company, Loewen Clovis Realty, as a way to provide my services for those that need it in the area.

Outside of real estate, I am usually biking around Clovis, hanging out with friends, reading, or attending church functions.

Comments

  1. AndrewSchaap says:

    I now feel much better about owning a home

Leave a Reply to AndrewSchaap Cancel reply