There’s nothing quite like getting the keys to your first home. If you’re still on the fence, not sure if you’re ready to move out of your rental and into a space of your own, consider these ten reasons owning a home is better than renting.
Why Owning a Home is Better Than Renting:
1. No Landlords
Do what you want, when you want. There’s no more answering to someone else, asking for permission to do home improvements, or hiding pets when the landlord stops by to fix a problem (not that you’ve ever done that, of course). When you own your home, you are the boss. And that feels pretty terrific.
2. Tax Advantages
If you’re still renting, your rent goes straight to your landlord, and you won’t see any of it again. As a homeowner, all that changes. At tax time, you can deduct the interest paid on your mortgage. You can also deduct your property taxes, as well as any applicable private mortgage insurance (PMI) payments. While there aren’t any tax credits for owning a home per se, you might be eligible for tax credits if you’ve completed any improvements to make your home more energy-efficient. Check out energy.gov to see if you qualify.
Owning a home is better than renting because it’s a smart financial decision. Not only can you take advantage of tax breaks (see above), you’ll also be gaining equity in your home year after year. As homes continue to increase in value, your net worth increases as well. Plus, should you face an unexpected expense in the future, you can borrow against your home’s equity to free up capital.
4. Choose Your Paint Colors
While this isn’t as life-changing as gaining equity, it’s still a definite plus to owning a home. As a renter, you probably aren’t allowed to paint the walls. If you are, you likely have to return them to a neutral color before moving. When you own your home, you can paint the rooms whatever color fits your fancy. Want an orange living room, a purple bathroom, and blue bedrooms? There’s no need to ask permission. Do whatever you’d like! (Of course, when it comes time to sell your home, you may want to consider a more neutral pallet).
5. No More Pet Deposits
Over time, renters can spend thousands of dollars on pet deposits, cleaning fees, and other associated costs. When you buy a home, however, you can kiss those deposits goodbye. Do you want to adopt another dog? Go ahead! There’s no one stopping you anymore.
6. Stability and Security
Say goodbye to rising rent costs, unplanned moves, and uncertain futures. When you purchase a home, the mortgage payment you have the first month will stay the same throughout the life of your loan. While the total amount may fluctuate some based on your local taxes, your monthly mortgage payment will never increase.
You’ll also be able to embrace a secure, stable future. Renters always face the possibility that a landlord will decide to sell or raise the rent, forcing them to relocate. However, when you own a home, you can rest assured knowing you’ll live in the same location until YOU decide to move. For many homeowners, this sense of stability is the number one reason for buying a home.
7. DIY Projects
Crafters and artisans love owning homes because it offers them the freedom to tinker and create. Do-It-Yourself (DIY) projects are a staple for most homeowners, and owning your own space means you’re free to make any improvements you see fit. Check out these ideas for some inspiration!
8. Social Benefits
Homeowners are more likely to get involved with their neighborhood and local community than renters. Researchers think these statistics reflect a homeowner’s desire to keep his or her community safe, to change existing laws or regulations, and to create a stable environment to raise a family. When you purchase a home, you are investing not just in one house, but in an entire neighborhood.
9. Retirement Security
If you purchase your first home at 30 years old with a 30-year mortgage, you will own your home free and clear by the time you’re 60. And that’s assuming you only pay the minimum payments. If you pay extra towards your principal every month, you could own your home even faster. Imagine being 65 and retired with absolutely no house payments ever again. Purchasing a home is a great way to reach your retirement goals.
10. It’s Yours!
There’s nothing better than coming home to a house that is all your own. Owning a home is better than renting because there’s an indescribable sense of pride that comes with homeownership.
If you’re still unsure whether homeownership is right for you, contact a local Realtor and begin the conversation. You could be surprised to find you can afford a home of your own sooner than you might think.