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 Buying a home is a monumental decision. It is one that should not be entered into lightly, without proper consideration and care. But after you’ve invested the time, done the research, crunched the numbers and found the perfect home, questions may still linger – is it really better to buy or to rent? Building Equity in Your Home While your monthly rent payments disappear into your landlord’s pockets and do nothing to benefit your financial situation, monthly mortgage payments consistently contribute to increasing your home’s equity. Equity is equivalent to money in your pocket – not your landlord’s! As a home owner, you can borrow against the equity in your home to pay for future necessities, such as a child’s education or costly home repairs. Your Home is a Tax Write-Off The U.S. government and federal tax laws strongly favor home owners and provide tax incentives for them. One of the most important tax advantages of home ownership is the deduction of mortgage interest. If your totaled itemized deductions exceed the standard federal deduction, the tax benefit can be quite beneficial, especially in the early years of home ownership. While your rent payments also serve as a tax deduction, they do so for the property owner, not the renter! Stability of Home Payments With a fixed mortgage rate, your monthly mortgage payments could be as low or even lower than your current monthly rental payment. And while your mortgage payments will never rise, your landlord can choose to increase your rent every year. Home ownership also provides a sense of security. With renting, there's always the possibility of your landlord selling the building or choosing not to renew your rental agreement. Pride of Ownership Today, two-thirds of Americans have achieved the American dream - owning their own home. Your home can reflect your own unique personality – in the wall color, fixtures, and landscaping you choose. When you rent, you almost always have to ask the landlord’s permission before making any changes to the property. And when you rent, you’re making the monthly payments for the landlord, so that he/she can own their own property. There’s no long-term benefit to you in renting. |