There are many benefits of owning a home instead of renting one. From tax benefits, growth equity, and having a place that is truly yours, paying a mortgage can be much more advantageous than monthly rent. Here are three major benefits of owning a home versus renting one.
Rent Prices Tend To Increase
Within the last several years, the cost of rent has risen tremendously. And this trend is expected to continue. Because the cost of rent is becoming so high, a monthly mortgage may be a cheaper option for many individuals.
Being a Homeowner Is Also An Investment
Renting a home builds no equity. When you purchase a home, you make monthly payments toward your mortgage. And after the mortgage is paid off, the home is yours! This means you can sell it to make your money back, or even more than you paid for. When you pay rent, there is nothing you get in return.
Interest Rates Are At Historic Lows
When interest rates are low, it is the right time to purchase a house. A small change in interest can be an incredible savings opportunity. Right now is a great time to purchase a home and lock into a lower interest rate. Compared to renting, you will likely find that the current rent rates are projected to be higher and higher than a mortgage payment. Not only are you spending more money, but you do not get the yearly tax deduction with renting.
There are many other benefits of owning a home vs. renting one. Working with a qualified mortgage lender can be the best financial decision you make, and will put you on the path of owning your very own home.