Buying vs Renting

Dated: March 21 2021

Views: 5

Owning a home and having a steady mortgage payment over the inevitable rent increase realities has been a benchmark for many. But as highly dreamed about as that is, there are over 43+ million Americans who rent instead to save on monthly costs. However, though renting might work well for some in the short term, there is no denying that there are massive benefits of home ownership that simply cannot be replaced by renting.

 

1. Cheaper in the Long Run

Buying a house is typically going to be more expensive initially, and renting looks like the cheaper route, but only for a little while. If you take yourself outside of the “right now,” home ownership can actually be relatively less expensive than renting by looking at the long-term effects. As long as you play your cards right, such as paying 20% in a down payment to avoid PMI taxes and buying during prime times, you can expect to have more money in your pocket, especially when you finally pay your home off.

 

2. Improves Your Net Worth

Did you know that home owning is a fundamental way to build your own net worth? Sure, you can increase your wealth through other means, such as investing, but home ownership is the most tried and effective way to reach that goal quickly. According to a Financial professor named Sebastien Betermier, about 67% of the average person’s total wealth comes from their home. Yes, that percentage can vary, but it is a promising fact that owning a home can still offer significant advances for your collective net worth if that is one of your missions in life.

3. Allows You to Build Equity

Owning a home means you are building equity for yourself. You are paying into a property that you will eventually own rather than throwing away money towards something that will never be in your name. What is even better about this is that if you buy a home for $200,000, but raise the value to $225,000 through renovations, your equity increases, but the mortgage value you still owe does not.

4. Stable Environment

When you opt to become a homeowner, you have a stable place that you can call your own without any constraints. You are not obligated to answer to someone else (such as a landlord), and you are free to live as you wish. As long as you make your mortgage payments, the house is yours. In addition, if you chose a fixed mortgage interest rate, what you pay is going to be the same the entire duration of your loan. So, there is no need to worry about rent increase or eviction risks (which can still occur even if you are paying your rent on time).

 

Conclusion – Initial Investment for Long Term Benefits

The price of home ownership is the leading reason why so many choose to rent instead. The upfront costs tend to look daunting, and it might very well feel overwhelming. But if you do your due diligence, have good credit, and shop within your budget, there is something out there for you that can fit your lifestyle perfectly. Plus, you can get some very impressive homeowner tax benefits, which is an added bonus. Overall, the benefits outweigh renting on nearly every futuristic front, and is a highly suggested option to take if you want to foster wealth and live a more financially balanced, self-sustaining life.

Blog author image

Gustavo Ramos

At Desert Valley Home Group we know the local real estate market in Maricopa County better than anyone else. After all, it’s our home too! Our professional & friendly team has been matching the righ....

Latest Blog Posts

Average Time It Takes To Buy A House

When you are considering buying a new home, you are probably wondering about how much time it takes. Overall speaking, shopping for a new home may take between 4 and 5 months and an additional 1 to

Read More

A Good Time To Sell

One of the most common questions real estate agents get is when it is a good time to sell a home. We have to say that this is a very important question and deserves to be considered as such. After

Read More

Closing Costs & How Much Are They

Buying a new home is a very important step in your life. You are finally the owner of your own home and it deserves to be celebrated. For many, it’s a dream come true. However, in case you are

Read More

Top 10 Questions To Ask When Buying A House

Alright, so you’re ready to purchase a house.You’ve saved up enough for a down payment and now you’re looking for the perfect new home for yourself and your family.But here’s

Read More