Buying vs. renting- It’s an eternal debate and depending on who you speak to, you’ll get all sorts of different arguments and beliefs. There are those who consider renting a home easier and most economical while other look at buying as a way to build something for the future. Here we take a look at why owning your own home is a much better option.

LONG TERM BENEFITSLONG TERM BENEFITS While initially renting a house Is definitely cheaper however in the long run you end up paying a load of money for something that you don’t even own. Not to mention the fact that every time your lease gets over you have to contact a real estate agent and start the house hunting process all over again, spending large amounts of money and valuable time in the process.  When you own your home then not only do you avoid such hardships, it ends up being cheaper since the mortgage decreases as time goes by and your financial burden is lessened.  

BUILDS WEALTHBUILDS WEALTH If you can afford to buy a good home then in effect you are taking the first step towards building wealth. Most of us always know someone who inherited a house in a prime spot that was bought for a fraction of its current price by his or her ancestors. Our parents knew it, their parents did as well and so on- owning a home is a very financially savvy move. When you own a home you hold a form of equity that is the price that you can sell it for minus the money you still owe in the form of mortgage. Obviously your mortgage decreases as your monthly payments go by and as a result the equity of the house increases. In the long run the value of the asset hold increases exponentially and once you have paid of the mortgage you now hold a prime asset that you can sell for a handy profit if you chose. In a way a mortgage can be seen as a saving plan that you are contributing to by owning your own home.

TAX BENEFITSTAX BENEFITS There are tax benefits that you can enjoy once you purchase your own home. While you rent, the maximum benefit you enjoy is the deduction of the rent amount from the total tax payable however in the case of home ownership you can deduct the mortgage interest from the tax payment. As you can imagine this is a fairly significant amount that can bring down the tax burden significantly. Similarly property tax amounts on any homes you own are fully deductible from the income tax that you owe to the government. If you pay any interest on a home equity loan or against a line of credit, that is deductible as well.  

As you can see owning is a much better option than renting. An option anyone with a foresight

is compelled to experience.

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