There are many, many options of where to live in this world. However, one choice that you should get out of the way right at the start is whether you want to buy or rent a home. There isn’t necessarily a right answer to this question, as it almost entirely depends on the situation that you find yourself in at the time. Here are some benefits that will hopefully help narrow down your decision…
Buying benefits
Tax deductions: There a great tax reasons to buy a home. You can use the mortgage interest on any property that you buy as a tax deduction, meaning that your home will give you a nice little return at the end of the year.
Building equity: One of the biggest reasons that one might want to buy a home is that it is a great way to build capital. Each payment that you put towards paying off your home is actually building your equity, giving you more and more wealth as time goes on, as opposed to paying rent, where each monthly payment isn’t building towards anything.
Security: Buying a home can give you and your family a sense of permanency that simply can’t be achieved by renting. Buying a home is a long term investment that gives you a place you can call home for a good deal of time. Home payments are also relatively stable once they begin, as opposed to paying rent, which can fluctuate at a land lord’s will.
Community: People who own homes typically tend to be more connected with the community around them. The time commitment is more incentive to get involved in community activities and putting resources towards local schools and organizations. You will also feel a lot more connected with your neighbors. It’s hard to get this same sense of community when renting, but it just comes natural with a home purchase.
Renting benefits
Freedom: One of the absolute biggest reasons to rent, rather than buy, a home is the freedom that comes with it. Buying a home will make it much more difficult to move. Renting is essentially a way of keeping your future options open, as you won’t be tied down by such a large investment.
Usually cheaper: This may depend on the value of the home’s you would be looking at buying, as well as the area that you might be renting in, but typically renting means that you will have cheaper payments. If you are curious as to whether this applies to the options you are looking at. Find a payment calculator online to give you a good idea.
More options: When it comes to buying a home, some of the nicer, more established neighborhoods are already all inhabited. However, there will likely be many houses in these neighborhoods that are rentals. This opens up your options of where you want to live dramatically. You could even live in the heart of the city, if you really wanted to.
Less maintenance: Buying a home comes with a lot of added responsibilities, such as being responsible for the upkeep of your home. This can add a lot of unexpected costs into owning a home that simply aren’t there with a rental. Typically, a landlord will handle most maintenance issues on a rental