When people start hunting for a new place to live, they will usually ask themselves if they want to rent or buy. Renting means not having to worry about landscaping, shoveling, repairs, dealing with the city or town, and emergency work that can get extremely expensive. The pros side of the renting chart can be pretty significant, but there are plenty of benefits that come with buying a property versus renting it.
Freedom To Do What You Want
When you rent a property, you have to get the land owner’s approval to make any changes to the property or add anything of substance such as another room. But when you own, you can follow your impulses and do whatever you want with your property, provided your project falls within the local zoning laws. This freedom includes the ability to add value to the home by remodeling the kitchen or bathroom with features that potential buyers would like.
Paying your rent means that you have earned the right to live in your rented property for another month, and nothing more. Your landlord figures in operating costs and then pays the property mortgage with your rent. When you own your property, you build up equity whenever you make a mortgage payment or an improvement on your home. You can use that equity to finance your child’s education, make a major purchase, or go on the vacation of your dreams.
Deciding To Rent
If you buy a property and then have to make another move a few years later, you can always rent out your home and turn it into a monthly income. When you rent, you are always going from home to home to accommodate your living needs.
No Unpredictable Living Status
If you rent your home from a landlord, then you are at that landlord’s mercy. If the landlord’s sister is moving back to town and she needs a place to live, there is a very good chance that your place is what she will choose and you will have to move.
When you own your property, as long as you make your mortgage and escrow payments, you decide when it is time to leave. Unless you are getting foreclosed, there is no one who can give you 30 days notice to vacate the property so someone else can move in.
Paying rent for the property you live in gives you absolutely no tax benefits at all. But when you own the property, things like improvements and even property taxes become write-offs that can help to increase your potential tax refund.
If you have the option to choose between renting or buying your next home, you should strongly consider buying. The financial benefits you could reap from buying are significant, and the peace of mind you get knowing that you can live right where you are as long as you make your monthly payments can make life much easier.