Owning vs Renting. What’s the difference?
There are dozens of reasons to own, but I’ve only listed 7 for your convenience!
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying
2. Appreciation. Real estate has long-term, stable growth in value. While some year-to-year fluctuations are normal, median existing-home sale prices have increased since the recession. In addition, the number of U.S. households is expected to rise over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but
mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And
when you sell, you can generally take up to $250,000 ($500,000 for a married
couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the
years so your housing costs may actually decline as you own the home longer.
However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can interior decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance
to participate in community activities, lets you and your family establish lasting
friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for
you, use this “Buy vs. Rent” calculator: