Owning a home has long been considered part of the American Dream. June is National Homeowners Month, so it’s the perfect time to look at the positive aspects of buying a house. The following are the top five reasons owning a home is better than simply renting.
At the outset, purchasing property is a significant investment. But it’s also a great way to build equity, which is the market value of your home minus the amount you owe.
Each month as you pay your mortgage you’re essentially saving money and paying yourself rather than a landlord. Additionally, as your home appreciates in value, your equity rises while your mortgage payments stay the same. You can also take advantage of possible tax benefits, which are not available to renters.
When you’re renting an apartment, you may feel as if you’re living on top of your neighbors. Sharing walls with fellow tenants often means you inadvertently learn far too much about each other, either from overhearing conversations or catching the scent of what they’re cooking for dinner. Your landlord or superintendent, too, may show up at any moment and need access to something within your space. If privacy is a priority, home ownership affords plenty.
Making it your own
Want to put up wallpaper, hang shelves, or knock down a wall to embrace an open floor plan? If you own your home, you can tackle these home improvement projects whenever you feel like it. That’s not the case if you’re renting. As a homeowner you have the luxury of personalizing your place so it reflects your taste and fits your lifestyle. Also, if you’ve dreamt of owning a pet, you can do so in your own home.
Consider it a source of income
Once you own a home, you can rent out a room or the whole place and enjoy additional income. Sites like Airbnb.com and VRBO.com (Vacation Rental By Owner) make it easier than ever to put your home to work for you. Or, if you decide to find a full-time tenant, talk with a real estate attorney or an accountant to ensure you’re adhering to tax laws as well as zoning ordinances and local property rules.
Borrow against it
Whether you’re planning a once-in-a-lifetime trip or want to help a student pay for school and could use an influx of cash, your home can help. Taking out a second mortgage allows you to borrow money against your property, while a home equity loan is a rolling line of credit that you can access as needed. This option that doesn’t exist for renters.
If you’re thinking about purchasing a home, consider these advantages.