3 Reasons Why Buying Is Better Than Renting
Traditionally, a huge part of the American dream was home ownership. Many people have worked towards that goal. Following the recent housing colapse, many people began to question whether buying a home was actually smarter than renting, with some advocating that home ownership came with lots of risks and not enough rewards. That couldn’t be further from the truth! There are many advantages to buying your own home, and several of them are below.
- Tax breaks. It’s been said that the only guarantees in life are death and taxes – so why not get a break on how much you owe each year?? One of the major benefits of home ownership is the tax deductions. There are tax advantages and tax breaks whether you are a home owner with only one primary residence where you live, or whether you also own investment properties that you rent out. Home owners are eligible for tax deductions on the mortgage interest they pay, for thousands in savings. These tax deductions reduce your total taxable income, as long as you itemize your deductions. Lower taxable income results in a lower tax owed to Uncle Sam and more money back in your pocket at tax time.
- Homes are valuable assets. When you own your own home, every month you’re be making a payment directly towards a tangible, valuable asset: real estate. When you rent, you hand your money over to someone else, who will eventually own land and a building that has no mortgage on it (thanks to your monthly rental payments). The owner could choose to live there, “rent free” (minus taxes, insurance, and other normal living expenses), or they could continue to earn income on it. Although real estate values can certainly fluctuate in the short-term, in the long-term real estate is nearly always a winning move. There’s also something nice about the idea of owning a home where you know you’ll stay, where your kids will grow and maybe even where your grandkids will come and visit. That home will be a built-in part of family memories.
3. Home ownership gives you freedom. With most rentals, you’ll be subject to a lease and all the rules, terms and conditions of that lease. You likely won’t be able to personalize it with paint, carpet, hardwood, or new kitchen appliances. You may not be able to own pets, or you might be limited in the type and number of pets you can own. You may even be restricted to who can visit and how long they can stay. But when you own your home, you have the freedom to make a house your home because it is 100% yours!
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