Owning your own home is part of the American dream. But yet there are so many people that are confused on why they should buy over renting. Here are 9 great reasons to buy your own house, rather than pay your landlord’s mortgage payment by renting!
- See owning as an investment. – You are investing in you and your family’s future. You are leaving your family an asset.
- Chance to build equity and credit. – You have a safety net in case of emergencies. Build your credit for more financial stability and better rates on the things you want.
- Smarter/cheaper than paying rent. – In most situations, paying rent is way more expensive than buying. In essence you are paying your landlords mortgage and building his equity and credit.
- Nobody can tell you no! – Some rentals come with a hefty list of do’s and do nots.. For instance, if you have an unexpected addition to the family.. You could easily convert/build a nursery. You don’t have to ask permission to paint or put a nail in the wall. Most rentals don’t allow pets. Some allow small animals, but if you have a large family dog.. you can forget it.
- Ramp up energy efficiency – Save money and get tax breaks just for making your home more energy efficient. Buying those new windows for your home may be written off at the end of the year.
- No Landlord can kick you out! – Suppose your landlord decides to up and sell the house you are living in. You may have no choice but to leave, putting you in a unexpected financial burden you could have avoided by owning.
- Force Savings– Owning a home not only is cheaper then renting, it forces you to save money at the same time. Your monthly payments are going towards equity that you can tap into for retirement, college expenses, etc. whereas rent just flies out the window.
- Steady payments that won’t go up. – Unlike rent where the landlord can increase prices on a whim, with a fixed mortgage payment, you know exactly what to expect each month, and each year.
- It’ll be yours– You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You’ll feel better about your own place if you own it than if you rent.
- It’s risk capital– No, your home isn’t the stock market and you shouldn’t view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.
9 Reasons to Buy vs Rent