Choosing to buy or rent is a major decision that can affect both your financial health and lifestyle. But with benefits ranging from the possibility of building equity to housing stability, there are several reasons why it’s worth taking the plunge on a place of your own vs. renting.
Check out the pros of owning vs. renting and why purchasing a home might be the smartest move for you in 2023.
1. Building Personal Wealth
Owning a home is how some Americans could build wealth. Instead of paying rent, an unrecoverable cost, homeowners could build equity and net worth by paying a mortgage. Once you fully pay off your mortgage, you will have 100% equity in your asset, and your personal wealth could grow. Buying a house could be a smart investment if the timing is right.
2. Housing Stability
When you buy a home, you can forget about lease periods and unpredictable landlords. Homeowners can live a stable home life without worrying about the upheaval of a rent increase or ending lease contracts. Many people pursue homeownership to gain the freedom of having predictable monthly costs.
3. Customization & Personalization
One of the biggest differences between owning and renting is the ability to make the place your own. From adding a backyard garden and new landscape to painting your walls a new color, homeowners can change their house exactly how they want it to be. On the flip side, if you want something updated or added in a rental unit, you often have to request it from your landlord, who makes the final decisions.
4. Tax Benefits
Homeowners may receive certain tax benefits. Although there are several tax breaks homeowners can capitalize on, the biggest benefit will likely be from the home mortgage interest deduction. This itemized deduction is a tax incentive for homeowners that allows them to count the interest they pay on a loan related to building, purchasing or improving their primary home against their taxable income, lowering the amount of taxes they owe.
5. Pet Restrictions
If you’re renting, the management may charge an extra pet fee or rent for your furry friend to live with you. Some may even have breed restrictions that could prevent your pet from being able to live in rental units. But with homeownership, you will no longer have to bend to those unpredictable rules or surcharges. Owning your own home allows you to control what is or isn’t allowed on the premises.
Ready to become a homeowner? Get in touch with a Starlight representative and schedule an appointment with one of our Home Guides to get started.