While there are many people out there who enjoy renting a home, there are just as many (if not more) who dream of the day when they’ll be able to purchase real estate.
There are a variety of pros and cons associated with both owning and renting. Here are some of the many advantages of owning a home:
- Ability to make it your own. When you own a home, you have the right to do whatever you want to the property. Conversely, when renting, you can only make so many changes.
- Higher level of privacy. Although some landlords will let you “do your thing,” others are hands on. They are always watching you. They are always around the property. This lack of privacy can be frustrating.
- Opportunity to make money. While there is no way of knowing what will happen to real estate prices in the future, homes typically increase in value as the years go by.
- Predictable costs. With a fixed-rate mortgage, you’ll know what your housing costs will be every month. With renting, however, you may find your price increasing every time you renew your lease.
- Tax deductions. Did you know that property taxes and interest on your mortgage payment are typically tax deductible? This can go a long way in saving you money on your taxes, year after year.
These are just a few of the many advantages of owning a home vs. renting. Although everyone is facing a unique set of circumstances, you owe it to yourself to lay out the pros and cons to ensure that you make an informed and confident decision.
Even if you find that owning a home isn’t the right decision right now, things could change in the future. You need to keep an open mind, as this will lead you toward the living arrangement that makes the most sense for your personal and financial situations.
What are your thoughts on owning vs. renting? Do you prefer one over the other? Share your feedback in the comment section below.