There is a consistent argument between whether buying a home or renting one is better for someone in today’s market. While there will always be advantages and disadvantages to both sides, this article focuses on the advantages of owning a home, and how it is better than renting property.
There are several reasons that buying could be better for you than renting a home, and it is very important to consider your personal situation and what you are looking for primarily in a home. This list contains seven of the greatest benefits to owning a home for a variety of situations.
7 Reasons Buying is Better than Renting
1. Overall, Buying is Better Money
To start with, buying a home is cheaper than renting property long-term. Mortgages are set at the time of signing and monthly payments do not increase over time, whereas many landlords will actively increase their rent with the lease renewal (which can be ever 6-12 months). And even then, many landlords are paying a mortgage on their property and renting said property for a higher rent price in order to make a profit. Similarly, owning a home provides homeowner’s with particular tax advantages that give more money back to homeowner’s in their tax return.
With the purchase of a home, long term equity is established. One of the greatest perks of owning your own home is that the regularity of your mortgage payments can greatly improve your credit stability and credit score. Similarly, you can borrow against the value of your home in order to take out a loan or start a credit line for bigger purchases, like starting a business, buying a car, or paying for college.
2. Power for Person-ability
Many renters struggle with finding person-ability or a sense of home since many landlords greatly limit the renter’s decoration. With owning a home, you can paint, wallpaper, or decorate the interior and exterior of the house with greater freedom and abilities.
With the power to personalize the home, owners also have the ability to renovate or reconstruct their home, and those additions would not be assets for another person’s property. Added security rails or a fence would be entirely the owner’s financial responsibility, but it would also add value to their property, and owners can enjoy the additions to their property for as long as they own the home.
3. Safer Neighborhoods
With homes, owners experience less neighbors than they would within an apartment complex. And with less neighbors and less connected walls to your personal home, there is more privacy to a home than an apartment. Owners no longer worry about whether the baby crying is going to wake up the whole floor, or if the neighbors can hear their personal disagreements.
Renters have to deal with maintenance, landlords, and apartment security inspecting or searching their home, but owners do not experience these kinds of inspections. With a sense of privacy also comes a sense a safety. Owners have an easier time installing safety systems, alarms, and locks.
4. Better for Childcare
Children have a huge amount of benefits from the stability of a single home in childhood. A stable home environment has been linked to better grades and testing, stronger interpersonal relationships, and higher rates of long-term employment. With homeowners, many children find long-lasting friendships with other children in the neighborhood, have a greater sense of place and know where their home is in relation to their surroundings, know where their school is in relation to their home, and are able to feel more secure about the world around them.
While owning a home is better for children to learn and explore themselves and the world around them, owning a home is also easier for parents trying to raise children. With a home, it is easier to put in a washer/dryer and have access to in-home laundry than it is with a rental or apartment. It is easier to establish a routine and to teach children home care like cooking or cleaning in a larger space.
Having a backyard also allows for children to play outside in a safe environment with less worries about whether others will also be present in said backyard.
5. Pet Freedoms
Landlords are afraid of pet damage, and therefore, pet fees are extraordinary when added to existing rent fees and move in fees. Along with a pet deposit and typically a monthly fee, many landlords add additional fees and additional services to the cleaning of spaces after move out, and some even add additional fees for stocking or providing doggy bags or spaces for their tenants. Even then, neighbors often will complain of any pet noise like whining or barking.
Buying a home allows for pet owners to avoid those additional fees, as well as to have outdoor space to build a fence or enclosure for their pet to play outdoors, and have a space for their pets to relieve themselves outdoors without any fees or penalties.
6. Entrepreneur Opportunities
Whether you want to start an at-home daycare, or if you’ve always dreamed of having your own candle company, you can start that company in your own home. Since many rental properties are already the location of a business, it is very hard to get a business licensed for a rental property location. However, owning your own home allows for greater freedoms when it comes to using your space to start up a company on the premises, as well as greater space for potential clients to park if needed.
Homeowners typically stay in their homes longer than renters stay in an apartment, and with the length that owners stay comes a stable neighborhood community. Its easier to make friends, and grow a community that helps each other out during holidays or hard times.
Children attach heavily to their community, and friends within the neighborhood are an incredible way for kids to connect to their neighbors, as well as learn sociability skills. Similarly, adults find friends, and often happiness when they begin to connect to and help their neighbors. Studies have linked greater levels of content and happiness with stronger community and neighborhood connections.
There are a number of reasons to own a home, but that doesn’t always mean it’s right for you. If you are thinking about buying a home, you’ll want to be sure you have enough saved up for a down payment and an emergency fund and that you’re committed to owning the home for at least a few years. Owning a home has so many benefits, and there are a wide variety of programs designed to help Americans finance and purchase a home, whether as a first time home buyer, or someone buying a home again. Look into your local government for any programs or grants for home buyers.
If you’re most interested in flexibility and don’t want the responsibilities that come with home-ownership, renting may be better for you right now. Still, you should keep the advantages of owning in mind as there may be a time later in life when it makes sense for you to buy a home.