The question of whether to rent or buy is one many of us grapple with over and over again. Each certainly has its perks, and in our modern, mobile society, renting can provide one some necessary flexibility. Still, there are many perks of owning a house, and it offers freedoms of its own, too. Let’s talk about all of the reasons buying a home can be the best thing for you.
#1 Buying a Home Is an Investment
We just recently discussed the ways a house acts as a great investment, but it is a major perk when compared to renting. While renting might allow you to change your mind and move on a whim, it is, as the adage has long conveyed, “throwing away money.” Now of course, you are getting a lifestyle and enjoyment out of that money, so we don’t know if that expression is fully true, but in regard to your finances and investment portfolio, it absolutely is.
When you rent, you leave with nothing to show for it. When you buy, you leave with an asset. It acts as a forced savings. And beyond that, depending on how long you owned it and in what area it is, you probably made a profit.
#2 Your Monthly Payment Doesn’t Change
It used to be that this wasn’t as big of a deal. Once in a while, maybe every few years, a landlord might raise rent by $20. But today, with the economy in the state it is and the pandemic causing major revenue problems for landlords, rent is changing frequently. Renters throughout the country are receiving notices of significant increases, often as much as 40%, with every lease renewal.
If you are renting in a desirable location and have the money to spare, this might not bother you too much. But no matter what, it is still a little frustrating! Plus, renting is almost always the more expensive option when compared to buying. Now that rents are increasing so much … well, the difference is stark.
#3 You Have Emergency Cash and the Tax Perks of Owning a House
The perks of owning a house include two more financial advantages. If you are ever in a pinch and need a large, quick lump sum of cash, you could sell most homes pretty speedily. You could also refinance and pull equity out of the mortgage, depending on your loan and circumstances.
On top of that factor, there are enticing tax advantages to owning. Renting does offer some tax breaks, but they are fewer compared with owning. This video and article from TurboTax showcases the differences nicely.
#4 Home Can Really Be Your ‘Home’
If you ask us, this is the biggest of all the perks of owning a house! When you rent, you certainly can’t do any major renovations, like restructuring two spaces into an open layout or adding millwork. But it goes beyond that! In many spaces, you’ll have to pay when you leave if you paint the walls a different color or nail things into them.
Of course, when you own a home, none of this is a concern. You can do absolutely whatever you’d like! In this way, it offers you a different kind of flexibility that renting doesn’t: the ability to personalize and age in place. That last point can actually apply to aging or just a shift in priorities or lifestyle. Maybe you want to live there into retirement, or maybe your older loved one is going to come and stay. You can customize the spaces to accommodate … if you own them!
Each of these four perks of owning a house demonstrate the beauty of ownership. But when it comes to the cons that sit alongside those pros, we know one of the biggest is maintenance. When you own, you have to invest time and money into upkeep. But have you ever considered the difference between caring for a freestanding house and one that is a part of a master-planned townhome/condominium community?
Take a peek at our home types to explore for yourself the varying levels of maintenance. (If you’re totally opposed to it, we’d recommend zeroing in on The Hamilton, our lock-and-leave luxury condominium option!)