You’ve spent years handing over your hard-earned cash to a landlord. But what do you really have to show for it?
Life as a renter can be frustrating, as well as expensive. But is the huge financial commitment of homeownership actually a viable alternative to renting? You may be surprised to know that the answer is usually “yes.”
Purchasing a home can be more beneficial than continuing to rent. These five reasons will prove it:
- Cheaper Payments: With rental rates on the rise, low fixed-rate mortgage payments can be a more affordable option. And while purchasing a home could require a large deposit upfront, the chances of recovering those initial costs increase the longer you stay in the home.
- Tangible Value: Unlike renting, homeownership is a long-term investment that stands to provide a substantial return. Quality properties in sought-after locations tend to appreciate in value. And, as you pay down your mortgage, your home equity will increase.
- Community Ties: As a homeowner, you’ll be more invested in your community and have an incentive to get to know your neighbors. In fact, 30% of homeowners make friends with their neighbors — something renters are far less likely to do.
- Freedom: Rental properties come with rules and regulations. That often means no painting, no remodeling and — perhaps worst of all — no pets. And even if pets are allowed, you’re likely to be paying exorbitant pet deposits and monthly fees. As a homeowner, you can customize your home at will and keep your pets!
- Tax Benefits: While it’s true that homeownership comes with additional expenses, some of those costs might actually be tax-deductible. They may include mortgage interest, property taxes, energy-efficient updates and private mortgage insurance premiums.
And these five advantages are just the beginning — you’ll also enjoy more privacy, less noise and no more pesky landlords. So yes, homeownership can be better than renting.