Why You Should Buy Vs Rent Chelsea Herring
Since the great recession of 2008, renting homes in The United States has dramatically risen in popularity. Data shows that in the ten years between 2006 and 2016, the number of rentals across the country rose from 31.2% of households being rentals to 36.6%. Many people have chosen to rent because they’d rather not be committed to one location, or because the large price point that comes with purchasing a home might intimidate them. While this is a fair assessment, buying a home comes with many unique benefits you wouldn’t have access to if you’re choosing to rent. Read on for a few reasons to think about buying a home over renting.
Mortgage Costs Are Consistent One of the unique benefits of owning a home is paying a mortgage over rent, especially if you can get a fixed-rate mortgage. When renting, there’s always the possibility that your landlord will raise your rental fee when you renew your lease. The only way this won’t be the case is if you’re in a rent-controlled building or neighborhood. Paying a mortgage adds a lot of budget stability that you otherwise wouldn’t receive while paying rent. Other payments that must be made by owners include insurance (something that isn’t a requirement when renting) as well as property taxes. While these are additional fees that renters aren’t necessarily paying, you’re still more likely to save money in the long run, as well as being able to take advantage of perks such as the tax deductions that come with property taxes.
It's YOUR Space One of the bigger downsides of renting a property is that you don’t have as much freedom when it comes to customizing your space how you’d like it. Rentals often allow you to make some changes, such as painting a wall, but you likely can’t get away with a bigger remodel such as replacing a floor or knocking down a wall to make a room larger. When you own your home, you have free reign over almost any decision regarding your home.
Tax Perks One of the biggest benefits of owning your home is the tax-related perks it brings to the table. When homeowners file their tax returns each year, they’ll be given the ability to deduct mortgage interest and other property taxes. You can use programs such as a mortgage calculator to help you figure out how much money you’d save each month in taxes from deductions. While all of those tax fees may seem intimidating at first, the savings you get from deductibles often end up making home ownership cost around the same, if not less, than renting.
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