Benefits of Home Ownership vs. Renting

A young couple standing in their new home kitchen
Overall, while renting is a good solution for the short term, in the long run buying a home definitely is more advantageous.

There are numerous people that want to give up renting for home ownership, but they stand on edge wondering if they are potentially making the worse mistake ever. It is true that buying a home is one of the most important decisions a person will ever make. It is important to be well informed about the home buying process in order to be in the best position to buy the property that is best for one’s personal circumstances. While renting may be “safe” in some aspects, it doesn’t really allow individuals to take full advantage of their ability to build their own wealth. Thus, the following details the many benefits of home ownership in comparison to renting.

One of the biggest benefits of home ownership is the building of equity and personal wealth. People that own their own are constantly increasing their equity when they pay a mortgage each month. As the mortgage is paid down and eventually paid off in full, a home becomes a piece of property that can be used to build personal wealth. When renting, any money that is paid goes to the landlord or the apartment complex. The renter does not obtain any benefit in the long term when paying for use of a property on a monthly basis. However, when buying a home in Burlington, Ontario, the monthly mortgage payment is paying off the 15 or 30 year mortgage that was used to secure the home. This is truly one of the main benefits of home ownership that all monthly payments actually bring people a step closer to building their own wealth.

An additional reason people should consider buying a home is to have security. Owning a home is the only way to truly know where one will live a year, five years and ultimately 30 years from now.  People that rent an apartment of home may encounter a number of interesting situations if their landlord is not paying the mortgage on the building where they reside. Numerous people find themselves homeless when they discover that their landlord did not pay the rent on their building. To avoid this form of upheaval, it is best to consider the benefits of home ownership. Once a home is purchased, the buyers can remain in the property as long as they pay their mortgage in a timely manner or until they decide to move.

Buying a home definitely becomes an advantage for people at tax time. Homeowners qualify for a number of tax breaks. This can help to greatly reduce the amount of money that people pay during the tax season. Each year, homeowners qualify for a number of different tax breaks for everything from purchasing energy efficient appliances to being a first time home buyer. Also, some of the tax related benefits of home ownership include the ability to deduct the mortgage interest from income taxes and deduct real estate taxes. These are some of the major tax and financial benefits of home ownership that people should consider.

One of the best things about buying a home is the ability to personalize your property. Everyone knows how picky landlords and apartment complexes can be about personalizing space. Renters are usually forewarned that they are not allowed to add or remove anything from the property. Likewise, most renters are subjected to the ever boring “white walls” that often lack personal style and character. However, homeowners can do whatever they please with their property because they own it. This is one of the best benefits of homeownership. Personalization of the living environment is something that many people want in order to feel comfortable. When buying a home, the ability to personalize and make home feel like a home is something renters will appreciate.

Overall, while renting is a good solution for the short term, in the long run buying a home definitely is more advantageous.

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