What Are The Advantages Of Home Ownership Versus Renting A Home?
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TO SELL A HOME: Call 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.
Related Article:
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