It has been very clear from the start that owning a home is more favorable than renting one. That it was a better investment for the future outcomes and that it would increase your net worth over a long time period. But as of lately there is a trend that favors renting over buying for similar reasons and so we will be exploring the pros and cons of both ends of the spectrum.
1. Owning a home allows for security
when you purchase a home within your price range and that you’re sure that you have enough income to more than satisfy your mortgage and interest rate, you have a sense of security that you cannot have when you’re renting a place. There will be no need to report to a landlord, and there will be no worries about a landlord possibly selling your home to another owner.
2. Home Projects and Renovations
When owning a property, you do not need to ask the permission of a landlord to paint your walls or fix a certain aspect of the house, all you have to do is do as you like. Also, any alterations that are positive to the home’s appeal will increase its value to the market.
3. Tax Benefits
the ownership of certain types of real estate especially the ones where you live in will give you permission to certain tax write-offs that you do not have access to when renting a home. This, of course, depends on your state, but for example, if you lived in Louisiana you can get a tax reprieve of almost $75,000 on the purchase of your home. So for example, if you bought a property for $200,000, you would only be taxed as if it was worth $125,000. There are also federal taxes that could be beneficial to the homeowners. As an owner, you are allowed to legally write off your interest payments to the bank as well as your property taxes on your home. This will allow you to decrease the amount you spend in taxes at the end of the year saving you even more money that you can spend or invest otherwise.
4. It is a Great Long-Term Investment Hold
Owning real estate could be considered a long-term investment. If your plan is to live in your home for 20 years, then buying a house is a better option because over time your property will gain value. However, this can swing in the reverse when the market becomes a lot more volatile (like it did in the 2008 market recession). If you’re unable to commit to that length of time, you’re better off renting. You should strongly consider your home purchase as not just an investment financially but also emotionally. You’ll gain a sense of belonging when you’re part of a community and you and your neighbors can work together to uplift the area and look out for each other’s welfare.
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