There may be times when renting a home is more beneficial for someone but for the most part owning your home is accompanied by far more conveniences and advantages.
A now retired uncle and aunt of mine, uncle Joe and aunt Kim were renting a condo in the Abbotsford BC. Uncle Joe had been a minister who during his career had lived with his wife in parsonages. A parsonage is a home which is outfitted by the congregation during the minister’s time with them.
My uncle Joe and aunt Kim later admitted to me that one of the most colossal mistakes they had ever made had been not purchasing their own home. As they retired they noticed that friend and relatives who were retired as well were residing comfortably in homes that were either paid off or almost paid off while he and aunt Kim were spending the little retirement money they received on costly condo rent expenses. They kindly yet firmly urged me to not commit the same mistake as them.
Modern research is now revealing the fact that the benefits for not only a homeowner but also the community when homes are owned are extensive. From less teen pregnancies, more child education and a lifetime annual income for children that is higher. Here are a few more reasons why owning your own home has more advantages than renting:
- More Stability When it Comes to Housing Costs
If you have ever rented then you know that the payments can fluctuate greatly on a yearly basis but when you are paying a mortgage you payment amount is generally fixed during the full loan period. If their is a rise in taxes it is generally gradual. This is very noticeable during inflation if you are renting you will lose money while the owners make much more.
- Save On Your Taxes
If you are a homeowner you are entitled to noteworthy tax savings because property taxes and mortgage interests can be deducted from your federal income tax and even quite a few states´income taxes as well. Especially at the beginning this can really add up to quite a bit being as for the first few years mortgage payments are mainly taxes and interest.
- Debt Consolidation
A mortgage can be refinanced if you need to consolidate anything else you may owe, this is not in any way possible if you are renting a place. The interest on refinancing is guess what? Tax deductible.
When you own a home you are not putting money into someone else’s wallet, you are building your homes equity. For each year that the home is yours money is added to the principal which will be returned to you when your home sells. Imagine a savings account that is scheduled and continues to rapidly grow the longer it is yours. If your property appreciates which is what usually happens then more money in your wallet, your wallet not a landlord’s. This newly acquired equity can be invested in your personal goals such as education, retirement etc. This is probably an individual’s largest investment asset.
- You Can Genuinely Call it YOUR Home
When you are a homeowner you can do as you please with your home from decorating to landscaping the choice is only yours. If you want a pet have one, why not two? You do not have to be concerned of someone randomly showing up on your doorstep to inspect and possibly evict.
Regardless of your age whether you are already married and with family or finishing college the benefits of owning a home are there for all. A college student is at a financial advantage if they own their own home, this can help out with credit and is a great investment for them. Many times a college student who is purchasing a home will rent out the rooms and in the end the other students who are renting are paying for the house, not the homeowner themselves. Once a student is finished studying the could possibly make a profit by selling their home or even holding on to it as an investment which they can continue to rent out.