Why Should I Buy a Home When I Can Rent?

Written by on November 28, 2012 in Money - No comments | Print this page


Buying a home can just sound like a very overwhelming project to begin. When presented with the choice of renting or buying, many will choose the seemingly easier route that doesn’t include home ownership. However, what you may not realize is that there are so many benefits to owning a home, it may actually end up being less stressful than renting.

For example, if you want to make any changes to a rented home, you must first get permission from the owner. They must approve any paint colors, renovations and even repair contractors before you can make a final decision. In some cases, you may only be responsible for the regular cleaning and they will make all maintenance selections. It’s like living as a guest but paying exorbitant visitor fees.

When you purchase a house, all these decisions end with you. You don’t have to ask permission to do anything and you can change your mind at any time. Paying a monthly mortgage is no different than paying rent, as it still has to be paid on time. The only major difference is that you’re putting that money back into your own equity account rather than a stranger’s. Did you ever consider paying yourself rent and wondering what that would be like? This is the perfect example of such behavior.

The tax benefits of renting are also much lower than those of a homeowner. As a renter, you may receive a refund of just over $100 or so depending on where you live. As a homeowner, you have a variety of deductions for everything from energy efficient renovations to regular safety equipment and other responsibilities. Clearly, the heavier financial benefit goes to those paying a mortgage rather than a monthly rental rate.

While you need to have your financial records in order to buy real estate in the first place, owning a home teaches you a whole new level of personal accounting. This same financial record keeping is not required for renters even though it’s always a good idea to stay organized. Rather, as a homeowner with tax deductions and projects with contractors, you need to keep files and receipts at all times. Not only will this allow you to pull up your regular bills at a moment’s notice, but also helps you plan how to use the equity you’re building up over time.

There may be a seemingly simpler way to live as a renter, but honestly, it’s not difficult to be a homeowner. You own the property, the financial benefits are all yours and you’re giving yourself a source of real estate financing for the future. Buy a home and you’ll benefit for several years to come in areas where renters never will.

This is a guest post.  Article brought to you by OpenOffer.com

Image courtesy of -Marcus- / FreeDigitalPhotos.net


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