5 Reasons Why You Should Buy Instead of Rent

We have all been there…you’re renting an apartment or house and you’re trying to decide whether it’s time to buy a home or continue to rent. Not sure what to do? Not to worry! We are here to give you the rundown of why owning a home makes more sense!

You can paint over the buttercream yellow.

That’s right, no more bland walls! Paint those walls whatever color you want! When you own a home, any kind of change you want to make is possible! Want to remodel the bathroom? Go for it. Don’t like the standard buttercream yellow? Change it. Want to have a massive Great Dane that sheds and slobbers? Get it and name it something cool. You’re not limited to what the landlord allows and doesn’t allow. Nothing is worse than not being able to make your house your home.

It’s an investment.

The bad thing about renting is, each month your rental payment doesn’t go towards anything. It’s not moving you closer to owning your own home. Essentially, it’s cash down the drain. Why put money towards something that is not yours? Over time, a home and/or property appreciates. It’s like buying stock but better. For example, say you bought $30K in stock and it appreciated 3% every year. You have now gained $2,782 on top of the $30K invested. If you buy a home for $300K with a $30K down payment and it appreciated the same amount per year, you would have gained $27,818 on top of the $30K instead. The difference is if you sold the home, you would not pay taxes on money gained whereas with stock, you’d pay taxes on money gained. Put that money to work for you!

There are tax benefits.

Homeowners are able to deduct mortgage interest and property taxes when they file. What does that mean? It boils down to this: more times than not, you can actually own a home for the same amount or less than renting.

You are still not convinced? Well then, let’s keep going!

Consistency matters.

If you choose a fixed-rate mortgage, your house payment can never change. A few benefits of a consistent housing payment means better budgeting, lower risks and stability. When you are renting, you are essentially at the mercy of the landlord. Whatever they say, goes. Rent payments can be raised multiple times putting you and your family in a tight spot. While homeowners have property taxes that renters do not, and those taxes can rise as the home appreciates, that fee is tax deductible.

Mortgage payments = equity

Each month when homeowners make their mortgage payment, a portion of that is paying the loan down, creating more equity in the home. Basically, homeowners are investing in their own home whereas the rental payment is going straight to the landlord’s back pocket or paying their mortgage payment.