What Are The Advantages Of Owning A Home vs. renting?
Home buying has earned a bad rap in recent years: The subprime mortgage crisis and ensuing economic meltdown left many homeowners underwater, unable to pay their mortgage, and even facing foreclosure.
But the great American dream of owning a home appears poised for a comeback … in many parts of the country, rents are rising while housing prices are falling, making buying a home more affordable… in 98 out of 100 major metropolitan areas, including Detroit… buying has become more affordable than renting.
- Homes typically increase in value, you can build equity and provide a nest egg for the future
- Costs are predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage and rates are still low! Take advantage!
- Reduce costs by ramping up energy efficiency (pay less for utilities)
- Additional sources of income: from taking in a renter in a spare bedroom to renting out driveway space to commuters, Hodges says homeowners are increasingly finding ways to monetize their homes. In cities with scant green space, some homeowners even rent out small patches of grass for people who want to grow vegetables.
- No landlord can kick you out: control your life, call the shots, customize your space and you never have to speak to a landlord again!
- Homeownership forces you to save: the so-called “forced savings” argument is a widely-held one: Since homeowners have to pay their mortgage every month, they are routinely putting money away (and into their house, which they own), instead of squandering it on new shoes or fancy meals. Then, if you eventually sell your home after the mortgage is paid off, there’s a good chance that “you’ll walk away with a payoff,”…
- Save money with tax deductions: The chief tax benefit of homeownership is the ability to deduct mortgage interest payments, but the perks don’t stop there. Homeowners can also deduct eligible expenses (certain energy-efficient improvements, for example) and in some cases can avoid federal taxes on earnings from the sale of a home.
Read more at https://money.usnews.com/money/personal-finance/articles/2012/04/24/10-reasons-to-buy-instead-of-rent