Choosing to buy or rent a home is a big decision. For a lot of people, owning a home is worth it because it gives a sense of security and stability that renting won’t bring.
Renters do not have the opportunity to make long-term investments in their property, which will appreciate over time and increase their net worth. On the other hand, owning a home can have a lot of benefits. Homeowners get to capitalize on their home’s equity, which accumulates over time. They also get to enjoy tax deductions on mortgage interest payments and other homeowner expenses. Paying off your home will also enable you to live mortgage-free, and this will support a comfortable retirement. Someday, your home will be worth more than what you paid for it, and if you decide to sell, you’ll cash in on your home’s higher value. You may also have the potential of having a passive income in the future, if that is the route you want to take.
If you are on the wrong side of the picket fence debating whether it’s best to buy or rent your next house, read on. Below are some of the major reasons why buying a home is better than renting.
1. Long-term, buying is cheaper than renting
Rent is money that you cannot take back. When you are renting a home, you are making monthly payments for a property that you don’t own, which means that you don’t build equity.
A home is a major purchase and can be initially expensive, but if you consider the fees that come with renting, buying and owning a home will ultimately be cheaper.
In a lot of cases, buying a home can be comparable in cost to renting, considering the rates. And of course, paying off a property that you own is way better than paying off someone else’s asset.
2. Buying a home allows you to build wealth over time
Having a house of your own is a smart way to build lifelong wealth. A home is a valuable asset – worth more than just simply having a place to live in.
Real estate properties have been known to increase its value over time or appreciate. No other asset can build your wealth more consistently. When you rent, you are building your landlord’s wealth, and not your own.
Combined with leverage, real estate appreciation can offer big returns. For instance, if you purchase a property worth $300,000 and it appreciates to $330,000, you have already made a 10% return on your property.
3. Buying a home lets you lower your living expenses significantly in the long run
For a lot of people, the idea of living mortgage-free or rent-free someday is very attractive. This is not something that you will be able to do if you are renting a home.
Of course, you will still need to be responsible for paying property taxes and insurance, but that is a minimal expense compared to the costs of renting a home.
4. You have all the power to make it your own
Do you have a bathroom or kitchen that is in need of an update or a refresh? It’s your call – if the house is yours.
Owning a home allows you to do whatever you like with it – from repainting the walls to full remodels. The flexibility that purchasing your own home provides is a seriously appealing aspect to many. If you own your home, you have the freedom and full control to do what you want with it without having to worry about extra fees, lease contracts, terms, and other costs associated with renting.
5. Buying a home gives you stability
Many homeowners will agree that the privacy, peace, and stability of owning a home is beyond price. Purchasing a house means that your children will always have a place to call their own, the opportunity to go to school in a good district, and friends who live nearby.
As you can see, there are many reasons why buying a home is better than renting. Not only does it help you save on rental costs and help build your net worth, purchasing a home empowers you and your family and gives you the stability that you need to create lasting memories as you build a life together.
If you are looking for new homes for sale in New Orleans metro area, get in touch. Our team at Rise Up Real Estate Group has helped people who want to buy and sell homes for the past 10+ years.