Renters often get the short end of the stick when renting a home. That’s partially because they have no hope of ownership, and that’s the most well-known, and often only known benefit of owning a home. Not surprisingly, there are at least 7 distinct advantages of buying a home instead of renting one. Here you’ll learn what each of those advantages is and how you can make home ownership a reality for yourself.
1. Equity
When you rent a home, money often seems to go off into the void, disappearing forever but not really getting you any closer to owning anything. It’s a feeling of despair that many renters feel isn’t quite right, but they often feel helpless to do anything about it.
Homeowners, on the other hand, even if they don’t outright own their home for many years, have equity in that home. They lose some money to interest, but the rest goes down as principal. In other words, homeowners own the portion of the home they’ve paid for, and they’re constantly moving closer to outright ownership. Renters are stuck throwing money into the void.
2. Potential Passive Income
Homeowners who have Gold Coast Packages have at hand a potential source of passive income. You can rent out a home you own, but you can’t rent out a home that you’re renting. If you own a home, you’re set! Even if the home isn’t paid off, if you need to move somewhere else, you can always rent out that home and get passive income coming in.
3. DIY Ready
A home that you buy is ready for flipping. You can’t make alterations to rental properties in most cases, and in even those instances where a landlord will allow you to alter the property, they have total creative control over the process.
If you want rainbow carpet, and they don’t like that, you’re going to be helpless to re-carpet. Homeowners don’t have to worry about this issue. They’re free to take on any DIY project they want to, hire contractors, or do anything they want to the property they’re buying.
4. In Good Company
Homeowners are a select group of people and form a special community that relates to one another. When you buy a home, you’re in good company. Local neighborhood associations and block parties are the sole pleasure of homeowners who lay down roots and become well-known in their communities. Renters tend to be more nomadic, moving a couple of times a decade or more. When you own a home, you’re in great company and can really become a true part of the community.
5. Security and Stability
People who buy homes can get a fixed-rate mortgage that never increases. Rent on the other hand tends to go up every year or every couple of years, leaving people with a sense of instability over the years. Rent increases can cause financial hardship and come as a surprise in some cases. When you buy a home, fixed-rate mortgages can be a handy way to keep your monthly payment steady.
6. Tax Advantages
You’re not going to get a dime in taxes for renting a property, but if you own a home, there are certain deductions you can make that will increase your refund. Imagine getting a big tax refund just because you chose to buy. The IRS tends to favor homeowners and reward them generously at tax time. Remember this before you decide to rent, and consider buying a home instead.
7. Ownership Still Matters
Over the years, many people have taken the lazy way out and simply rented a home instead of buying. Sure, it’s quicker and simpler, but it’s not advantageous, especially when you consider that you have no hope of ever owning that rental property. You can’t make changes to it either. Homeowners have the best of all possible worlds and are steadily working toward ownership, something that still instills a great deal of pride in people of all nations. Homeownership still counts.
The advantages of buying a home are so great that it’s a miracle there’s anyone left renting properties at all. Unless you’re planning to move to a new location very soon, homeownership is the way to go in almost 100% of cases. It takes a little bit of homework and diligence, but as you can see, it’s well worth the time.
Recommended Reading: What is Personal Liability Insurance for Renters
Salman is a prolific environmental writer, and has authored more than 500 articles in reputed journals, magazines and websites. He is proactively engaged in creating mass awareness on renewable energy, waste management, sustainability and conservation all over the world.
Salman can be reached on salman@cleantechloops.com
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