Renting VS Owning

There are so many benefits to owning a house. Home ownership brings a lot of freedom that you don’t necessarily have when you rent. For me, one of the biggest advantagesof owning a home is having the liberty to completely transformour space. Other advantages we enjoy are certain taxbenefits, belonging to a tight neighborhood community, andbuilding equity.

Aside from having your very own place to plant roots, thebiggest advantage to owning a house is not paying your landlord’smortgage. What do I mean by that? Living in an apartment(or renting a house) means you pay a monthly fee to staya landlord’s residence. Your landlord will then use your rent topay down the mortgage on the property you live in, thereforebuilding equity in that property.

When you purchase a house you are making a smart investment.Unlike renters, homeowners build equity over time. Onmost mortgages, a portion of each monthly payment goestoward the loan’s interest. The remainder pays down its principal.(Your lender’s amortization schedule shows the exact proportions,which change over time, for each month’s payment.)Every dollar you put toward your loan’s principal represents adollar of equity—actual ownership of the property.