What Are The Advantages Of Home Ownership Versus Renting A Home?

 What Are The Advantages Of Home Ownership Versus Renting A Home? 

Homeownership Simplified- Call Keji @ 301-613-2043

Shelter is a basic human right that a lot of people work hard in order to afford. The main options available to individuals are buying or renting a home. However, for a person who has a steady income and who does not move around from country to country or from state to state, buying a home is definitely the better option. When one buys a home, they will have fulfilled a dream, as they will have a piece of the earth that they can call their own. However, there are very many more advantages of home ownership versus renting. They include:


Pride and esteem
For a lot of people, owning a home is the epitome of societal esteem. It means that they have settled, and they can provide a roof over their heads without the risk of ever being kicked out or ordered around by another owner. The pride and esteem also comes about because the homeowner is secure when they have their own home. They know that they will always have a place to go back to. This pride encourages the home owner to properly maintain the home. 


Building equity and Wealth
Even if you buy your home with the help of a mortgage, you will build your equity as you pay for the loan. Home ownership increases the equity and net worth of the individual. The mortgage payment is usually referred to as amortization. As the homeowner pays the mortgage and reduces the principle, they increase their equity or stake in the home. In case the value of the home increases, the person's equity will increase even more. However, this is not the case with rented homes. The tenant will pay an amount every month, but at the end of their lease, they will not have any increased equity in the home.


Tax advantages
A homeowner can deduct their mortgage interests as well as the property taxes when they file their annual income tax return. The tax savings are very significant, and they can help the home buyer to pay less when buying the home than when renting it. A financial adviser can help the home buyer to determine how much they will save after these taxes are deducted. However, there are no tax breaks when renting a home. 


Stabilized payments
This advantage usually applies for fixed term mortgages. In this type of mortgage, the home buyer will pay a fixed amount of principal and interest to the lender every month. Therefore, they can budget properly based on the income, so that they can always have enough money to spare in the end. Unfortunately, when renting, the landlord can choose to increase the rent after giving the tenant some advance notice. The rent can increase consistently over a period of time. This can significantly affect the tenants budget and their ability to organize their finances, especially if they did not get a raise when the rent was increased. 


Sense of belonging
A person who has bought a home in a certain community has a better sense of belonging. They usually feel that their community is their home, and they often participate in activities that will help to improve it. Studies have shown that home owners in most communities are usually more active in social events, and they are vocal when it comes to making the area a better place to live in. They help to ensure the well-being of the community in terms of security, amenities, utilities and education. 


Homes appreciate in value
Most of the time, the value of the home and the lot of land that it is built on appreciate in value. When the real estate market is great, the value of the home will significantly increase. This will increase the home owner's equity or share in the home if they are still paying mortgages. If they own the home, they can live in it for as long as they want, and sell it at its increased market value whenever they are ready to move out.

Greater privacy
A person who owns a home has more privacy, and they can do whatever they want in their home. They do not have to follow any rules and guidelines that are spelt out in a lease agreement. Furthermore, they do not have to answer to anyone about how they are living. No one will knock on their door to ask for rent money, or to give them an eviction notice. This increased privacy is rarely ever enjoyed by tenants, who are always answerable to landlords and house agents.

There are quite a number of factors that a person has to consider before buying a house. However, for the person who meets the criteria for buying a house, owning a home is significantly better than renting one. The advantages of home ownership versus renting should strengthen the potential home owner's resolve to buy a home of their own.

Ready to start journey from renter to home owner? There are many home loan programs available for first time buyers. Request more information here.. Request More information to get started.

Related Article:

How To Fire Your Landlord

  

How Interest Rate Affects You.

Keji & Associates of Fairfax Realty is a team of licensed agents working daily to get homes sold  for our clients in all parts of the metro area. We delight our clients by delivering  world class service every step of the way and we strive to create a win-win situation this  is all part of our values and beliefs. Contact us @ 301-613-2043, email keji@metrohomesrealty.com or visit our website . www.metrohomesrealty.com