When you rent a home or an apartment you pay a landlord for your housing and you never see that money again. Not having to be responsible if the roof leaks or an appliance breaks is a nice thing but is that convenience worth the money you’re paying? A closer look at buying vs renting reveals the benefits of buying a home.
If you’ve asked yourself, why do I need to buy a house - let’s start with money. For the sake of easy math, let’s say the average rent for a 2 bedroom, 2 bath apartment is $1,000 per month. In three years you will have spent $36,000. If you own a home and your mortgage payment is $1,000 a month, after three years you will have saved $36,000 and here’s why. Even though some of the mortgage payment is interest on the loan, your interest is deductible and your mortgage payments come back to you in the form of equity. When you have a fixed interest loan, your payment remains constant and you never have to worry about the landlord raising your rent. If you’re buying a home in Florida you can take advantage of the Homestead exemption which can reduce your taxable value on your home as much as $50,000 saving you approximately $750 annually.
Renting vs buying a home has other implications as well. When you buy a home you can make it your own. You may want to knock down a wall or paint your kitchen cabinets to better suit your personal taste. When you own your home you have the freedom to do whatever you’d like.
Many people rent because of maintenance issues and the knowledge that a landlord is responsible for repairs. But when you buy a new home your warranty covers any necessary repairs. Owning a new home gives you the most energy efficient features thereby lowering utility costs.
The rent or buy debate extends to a sense of community and pride of ownership. You take better care of something you own as do others who own in your neighborhood. You put down roots and enjoy a sense of community that is difficult to come by when you’re renting. You make memories in your own home – ones that last through the years as your family grows. Why buy a house? When you buy a house, you make it a home.
Should I rent or buy a home? When you consider financial implications, pride of ownership, sense of community and the freedom to customize your home to your liking, buying a home outweighs renting by a landslide.