When it comes to the debate over whether it’s best to buy a home or rent one, both sides can make a compelling case. The truth is that this isn’t a “one-size-fits-all” discussion. The decision to buy or rent is very personal, and depends entirely on the individual. If you’re stuck in the middle and trying to figure out your next step, here are a few of the benefits that each choice offers.
The Benefits of Owning a Home
It could be a good investment. While the real estate market fluctuates in the short-term, the value of your home will most likely rise over time. This means that when you buy a house, it will become more valuable the longer you live in it. When you’re ready to move out and move on, you’re almost guaranteed some kind of return on your investment. Obviously, the longer you are able to stay in your home the better.
You’ll enjoy tax-deduction benefits. There are many tax deductions that apply to homeowners. You can deduct the mortgage interest from your tax obligations. And each year, you can deduct your annual property tax. These fees are fully deductible for income tax purposes.
You can create the home want. When you own your home, you are free to create the living space that makes the most sense for your lifestyle and brings you the most satisfaction. You can replace appliances on your own schedule. Want to cut down a tree, pull up the carpet, or knock down a wall? When you’re paying the mortgage, you get to make those decisions. However, all of this also takes money.
The Benefits of Renting a Home
You have more freedom. When you’re renting, you can move whenever you want, within reason. If you get an amazing job offer three states away, you can accept it. If the city installs a brand new set of train tracks inches from your bedroom wall, you can sleep soundly knowing a new rental is right around the corner. If your career is still young or you haven’t settled into a long-term relationship yet, renting can offer more flexibility. In many cases, freedom can be the most valuable commodity out there.
You can call the landlord when something goes wrong. Do you know how to fix a leaking water heater? How much you’ll spend on a new roof? What the property taxes are in your state? While renting can be more expensive on a monthly basis, the extra money you pay means you don’t have to be the one who worries about getting things fixed, repaired, or replaced. Part of your rent pays for peace of mind, and that can be priceless.
You can’t afford a house yet. Despite its many benefits, buying a home is a big responsibility and not something you want to rush into. If you can’t afford a house right now, there’s no shame in renting for a few years, saving up your money, and figuring out exactly where you want to live and what kind of house you want to buy down the road. If you haven’t taken those steps yet, then buying a house isn’t for you. Instead, enjoy your freedom and work hard so that one day, your dream home can be yours – no strings attached.