"The best investment you can make is in yourself."- Warren Buffet
By choosing to purchase a home, versus continuing to rent, you are investing in yourself and in your future. The list of benefits of homeownership could go on & on! So we've compiled a list of the top 10 reasons why owning a home trumps renting one.
Invest in yourself each month! You have to make that housing payment each month. The biggest difference is who is really benefiting from it! With renting, you are making your landlord's mortgage payment. However with homeownership, you are paying down your own mortgage each month.
Consistent payment! Rental prices increase over time, but your mortgage payment will stay at the same amount 5-10-20 years down the line. This is especially helpful for budgeting!
Build your credit! Each month when you pay your mortgage on-time, you will be improving your credit score. You will be demonstrating to future lenders that you are a responsible borrower, & increase your buying power for the future!
Personalization! When you are a renter, you will be extremely limited in what you can do to the property. However as a homeowner, you will have the freedom to make the property into the home you've been dreaming of on Pinterest. Forest green accent wall? Paint away! Hate that carpet? Feel free to put in tile homeowner!
Stability! As a renter, you are at the whims of the landlord. If s/he decides to sell or not re-new your lease, you will be forced to move. However as a homeowner, you can stay in the home for as long as *you* want.
Equity! In short, equity is the difference in what a homeowner owes on their mortgage, versus home much the home is worth. We already discussed how you will be paying down your mortgage loan each and every month. Your home is also gain in value over time. This means you will make money when you decide to sell one day! When a renter moves, they get nothing.
Build a tribe! When you purchase a home, you are setting down roots. You will have the same neighbors year after year. This allows you to all get to know everyone and build a community. Need a cup of sugar? You will know exactly where to go!
Tax benefits! Did you know by owning a home, you will be eligible for tax deductions?! Homeowners can "write off" property taxes, certain home improvements and mortgage interest! The tax benefits of renting? Nothing.
Health benefits! A study from the National Association of Realtors showed that homeowners had higher self esteem, higher perceived control over their lives, and higher levels of happiness when compared to those that rent. Can't beat that!
Generational wealth! Homeowners will be leaving a financial legacy to the next generation! Homeowners will be able to leave their children an inheritance, that will therefore help the next generation to be more financially stable. Truly, is there anything better than knowing your children and grandchildren will be better off because of you?