One of the first things that may come to mind when one thinks of the American Dream is being able to own a house. Potential homebuyers have been hesitant as of late though, and the issue is that a lot of people feel they can’t afford a home in today’s day and age, especially the younger generation. They may see the large price point of a home and assume that their monthly rent is cheaper overall, but that’s usually not the case. Here are a few reasons you should buy over rent.
One of the largest benefits of buying a home over renting is the tax benefits that come with owning a home. When you buy a home, you can deduct mortgage interest on your federal income taxes. On top of that, there are other eligible expenses such as energy-efficient improvements or closing fees.
Buying a house is cheaper over time
In the long term, buying a house will always be cheaper than renting. Over time, rent prices will rise due to inflation. If you’re able to get a fixed mortgage rate, the mortgage will not. In addition to the fact that your mortgage will not rise since you can take advantage of the tax benefits of being a homeowner, you’ll get money back which will cause the overall amount of money you spend on purchasing a house to be lower than if you were to rent. On top of that, real estate values tend to rise over time. This means that one day you could potentially make some money off of that house if you were to ever sell.
It’s YOUR space
When renting a house, there may be certain things you can or cannot do with that property. This is because you don’t own the property, you’re just renting it out from another person or business. Your landlord may not care if you decide to do minor renovations, such as painting, but beyond that, you might not get much more customization or freedom. It can also be hard to find rental properties that allow you to have pets if you own one. When you own a home, those problems get thrown out the window. You have complete control over your living space.
Renting can be a much simpler option, but buying a home can be the greatest decision you’ll ever make. Take the time and do some research. Before you know it you could have your own happy home.