Renting Versus Buying A Home

Can You Afford Renting Instead Of Buying A House

It's true! Buying a house can be more affordable than renting. But even more, home ownership is part of our American heritage.

I understand it's not always possible to buy a home. But when the time is right buying a house creates many financial advantages that you cannot afford to overlook. I know. I have personally helped thousands of people buy a home.

1. Call The Plumber - Renting Versus Buying A Home

Why would anyone want to rent? Let's consider the rent vs. buy theory. The only advantage to renting in my opinion is that sometimes you can rely on the landlord for routine maintenance.

But if you have been a renter, you know that relying on your landlord when the water heater starts leaking over Labor Day or the dishwasher quits running in the middle of a cycle is never a pleasant experience.

2. Building Equity - Renting Versus Buying A Home

The first and most obvious disadvantage to renting is that you lose the opportunity to create equity. So let's start talking about buy vs. rent.

When you pay rent what do you get in return? Well, of course, you get a roof over your head.

But where does the money go? To the landlord who uses it to pay the mortgage. Over time he reaps the advantage of equity appreciation.

Instead of benefiting the landlord why not buy a house instead of renting? Over time, your house will increases in value and it will be you who enjoys the benefit of creating equity.

3. Tax Credit - Renting Versus Buying A Home

Not everyone is sure they can afford a mortgage payment. But the United States Government may be able to help with some of that.

The government wants you to own a home. So it allows you to write off a percentage of your mortgage interest payments when you file your yearly tax return. This means homeowners usually pay less in taxes vs. their friends who rent.

In addition homeowners can take property taxes as a deduction against income. Other deductions may also be available. Remember, is always wise to ask a CPA (certified public accountant) how tax laws relate to you.

4. Future Plans - Renting Versus Buying A Home

Another disadvantage to renting is the increase in rents. In general, rents rise. You can count on that. So owning a home is a way to protect against rental increases.

As your income grows over the years, you can plan for your future knowing that your house payment will remain steady. This benefit may seem small but eliminating the fear of rising rental costs over time gives many families the security to plan for college, retirement or care for aging parents.

5. Individual Style - Renting Versus Buying A Home

Another advantage to buying a house is the ability to freely decorate and landscape your home. Even if a landlord were to allow decorating, you are unlikely to create a style that truly reflects you.

After all who wants to pour their hard earned money into a house belonging to someone else.

6. Pride Of Ownership - Renting Versus Buying A Home

Buying a house allows you to create a home. Paint inside and out according to your individual taste. You can make improvements like planting the palm tree you always wanted, feeling comfortable knowing your house is a reflection of your personality and style.

We often call this pride of ownership. This is America at its core.

That is because buying a home, building equity, establishing financial security for our families, and expressing that in our communities makes us all better citizens.

7. Pursuit Of Happiness - Renting Versus Buying A Home

Ultimately, having a place that we call our own is part of the American Dream. It makes us happy and isn't that what our forefathers meant when they wrote in the constitution that we have the right to life, liberty, and the pursuit of happiness.

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Article No.136 by Kate Ford, real estate insider and author of Ask Kate. If you enjoyed this article, you will like Secret To Buying A Home - Choosing A Community also.