Why Buying a Home is Better than Renting One

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Renting has its benefits. It’s easy, it’s convenient, and you don’t have to deal with repairs or maintenance. But renting also means you’re never building equity or getting ahead. When you rent a property, your money goes toward someone else’s mortgage instead of toward your own future as an owner-occupied home owner. For example: If you buy a $200,000 house at age 25 and pay off the loan by age 65 at 5% interest rate (average), then those payments will add up to about $1 million dollars over the course of 30 years. That’s not only more than enough money for retirement but also enough for a down payment on another house (or condo) if you choose—which can help build even more wealth!

Buying a home is better than renting because it forces you to save money.

There’s no way around it: buying a home means saving money, and that can be hard work. You need to save for a down payment, closing costs, repairs and maintenance, furniture and accessories, moving expenses (if you move), utilities during your lease term, homeowner insurance—the list goes on. But saving all this cash is the best thing that can happen to your financial life because it forces you to get into the habit of setting aside money every month instead of spending everything now and making repayment plans later.

Buying a home is better than renting because of the tax benefits.

The tax benefits of buying a home are more predictable than those of renting. If you buy a home, you can deduct mortgage interest and property taxes from your income on your tax return. This is true regardless of whether you itemize deductions or take the standard deduction.

However, if you’re in a high-tax state like New York or California, it may be better to rent because the mortgage interest deduction will not make up for all of your lost income due to paying state income taxes instead of federal income taxes.

Buying a home is better than renting because it’s an investment.

Buying a home is better than renting because it’s an investment.

When you buy a home, you can use the value of your home to help pay for the down payment on another house. This way, when you sell the first house after living in it for a while, you’ll have some equity that can go toward paying off your second mortgage. You can also use this same strategy when planning to send your kids to college or even just take trips with your friends (or family).

Buying a home also gives renters more freedom than they would have otherwise; renters have very little control over their living environment while owning a place gives homeowners total control over what they do with their property and who they choose to invite over (or not).

Buying a home is better than renting because you make all the decisions.

You have the freedom to do whatever you want with your home. You can paint it pink, or purple, or even blue if that’s what makes you happy. You can knock down walls and add a pool in the backyard, or not. You don’t have to ask permission from anyone before making changes! There are no landlords who will tell you when and where in your own home that is acceptable for parties (or even how many people are allowed at once). In addition, if something breaks down inside of an apartment complex (kitchen appliances being one example), then there may be a fee involved for maintenance costs–which aren’t included in rent payments anyway. Owning a house means that things like these won’t cost extra money because everything is already paid for by having purchased the property outright!

Buying a home is better than renting because your payment goes toward an asset instead of to someone else’s mortgage.

Let’s say you buy a house for $200,000 and put down 20% ($40,000). You can afford monthly payments of $1,500.

Now let’s say you rent an apartment in the same area for $1,500 per month. That means every month you pay $1,500 but have nothing to show for it. In fact, if your landlord didn’t give you a discount on the first year’s rent (which they often do), even then all that money would be going toward their mortgage instead of yours!

But remember: buying is an investment in yourself and your future! Your payment goes toward building equity in the home—not someone else’s mortgage—which gives you something valuable if/when you decide to sell or move somewhere else.

Buying a home can help you build credit by making timely payments and by building equity.

While renting, you have no equity in the property and you have no place to call your own. If a landlord has a problem with you, they can kick you out without notice. But if you buy a home and make your payments on time, that can help boost your credit score over time.

That’s important because good credit is something more than half of Americans don’t have! And even though it won’t get some people into Harvard or Yale University (those universities rely heavily on SAT scores), having good credit will help them get approved for things like car loans and mortgages—and those are two things most people need at some point in their lives.

Buying has tons of benefits, and if you want to get on with your life and build wealth, buying is usually the way to go.

Buying a home is an investment in your future. There are many benefits to owning a home, including the fact that you can build wealth, build equity (the difference between the value of your home and what you owe on it), build savings, and get out of the rental cycle. Buying a house will get you out of renting forever and into homeownership where everything is under your control.

Buying also gives you freedom to customize your living space exactly as you want it without having to ask permission or pay higher rent prices just because some landlord wants new carpeting or more granite countertops in every room. If there’s something broken at a rented place, it’s usually not worth fixing because they’ll just remove it later anyway when they decide to sell the building—but if something breaks at a purchased property, they’re yours until they break again—and then maybe even after that!

If you’re ready to buy, we can help you get started. We understand that buying a home can be a big step, so we’re here to make sure that it’s as smooth and stress-free as possible. If you’re ready to begin the first steps towards homeownership, or wish to discuss the benefits of owning vs renting, please give us a call or text at 616-550-7686! We look forward to serving you!

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