It can be a difficult choice deciding whether to rent or buy a home. Overall, I believe that it is far more valuable to buy a home. Some people do not know the advantages of buying a home over renting a home. There are many different reasons as to why that is. Below, I have identified 8 different advantages of buying a home over renting one.
When you own a home, you have a sense of security knowing that you are the only ones with the keys. Your home is a safeguard against inflation.
You are acquiring a major possession over time by paying your mortgage. Instead of renting, you get to feel a little closer to owning your home each time you make a payment. The permanent improvements that are made on your home enhance your way of living and the value of your home will go up. For example, the garden that you plant will increase its value
Tax Deductible Advantage
Portions of your real estate tax and interest on your mortgage may be deductible from your income tax, depending on your situation. The best way to figure this out is to speak with your accountant and see what benefits you will have from home ownership.
In the long run, buying will be cheaper. In the first few years, renting will most likely be cheaper, but overtime the interest part of your payment should be lower than renting.
For most people, they feel a sense of pride in owning a home. This is a feel good reason, but is usually true with most people. You will feel very accomplished when you own a home.
When you rent, you always run the risk of your rent going up, but with a fixed rate loan, you can set your payment and keep it there.
Good Credit Opportunity
If you want to apply for other loans along the road, owning a home will make it much easier. You will be able to build equity overtime. Credit card companies usually favor homeowners. It shows that you have a sense of responsibility.
When you own a home, you can decorate and do whatever you want to your home, whereas when you rent a home, you have to ask the landlord for permission.