Buying vs Renting

Buying vs Renting A Home

There are many reasons for buying vs renting a home but here is why owning a house better than renting. 

buying vs renting a home

The decision of owning versus renting a house has been an ongoing topic of debate for a long time. While some might argue this is largely a matter of choice, the benefits of owning a home certainly outweigh the renting option. Investing in something that gains value and gets better over time is a proposition that attracts a lot of first-time buyers to consider the option of home buying. 

Buying vs Renting the top 5 reasons why owning a house is wiser

• Helps you build equity

One of the most obvious advantages, when buying vs renting is important, is that owning a home is the equity you build over a period of time. Not only it gives a certain sense of freedom & safety, it also allows you to consider other financial tools using your home equity such as a reverse mortgage. The amount you pay towards the principal on the mortgage, along with an increase in the value of the house, builds your home equity over a period of time. Whereas in case of renting, all the money you pay as rent to the landlord is not gaining you any benefit whatsoever.

• Tax benefits

Owning a property also allows you to take advantage of the tax benefits that come along with home loans and mortgages. Furthermore, one of the biggest benefits you get as the property owner is the fact that capital gains taxes are not applicable to the sale of the principal residences.

• Ownership pride

There is no denying the fact that owning a house gives a distinct sense of pride and ownership which is not the case with rental homes. Additionally, it gives you the freedom to manage the house as you wish such as painting, renovating, etc 

• Advantage of appreciation

Owning a home comes with distinct financial benefits in the form of property appreciation advantage over the years. As the home appreciates in value, it allows you to reap the benefits whenever you wish to sell the property. Needless to say, there is no such advantage in a rented home even if the value of the house goes up.

Renting home prices go up•  Rent keeps on rising whereas mortgage costs remain the same

Another benefit of owning a house versus renting is the fact that the mortgage payment on fixed rate mortgage never changes, unlike rent that keeps on rising with each passing year.

The bottom line is, as a house owner, you tend to feel more attached to the community and at the same time the house ends up being your biggest source of savings.

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