Why Buying a Home is Wiser Than Renting
Most financial experts agree that buying a home is wiser than renting because home ownership helps an individual or couple build wealth. One of the biggest advantages of buying a home is that each mortgage payment helps to build equity in the property, versus handing over a monthly rent check to a landlord .
Rental payments simply help a landlord to build his equity in the rental property and does nothing to increase the financial worth of the renter. It is a much wiser move to buy a home and have every mortgage payment help to decrease the principal owed on that home, rather than renting a place and helping to pay off the landlord's mortgage on what remains his building.
Another excellent advantage to buying a home rather than renting is that ownership brings certain privileges. Home owners can decorate their homes, both inside and outside, exactly how they see fit. They can remodel any room which looks or feels outdated without getting outside input or permission. Homeowners can also change or improve any aspect of the property on their timetable rather than waiting for a landlord to release funds for improvement work. A home that is purchased rather than rented can truly become a dream home, personalized to the extent that the owner makes it his own, rather than living with the colors, design and decor that a landlord has chosen.
Having a mortgage rather than a lease helps a homeowner to know what the fixed monthly payment will be for the next 10 to 30 years, rather than being subject to annual rental increases which a household budget may not be able to handle. There is a sense of stability that comes with home ownership that renters do not experience. Whenever a homeowner chooses to move from their home, it is their decision. Renters often face having to move unexpectedly if their apartment building or condo is sold to another owner.
There are definite tax advantages to buying a home rather than renting. Home owners can reduce their federal tax obligations by itemizing their mortgage payments as a legitimate deduction. Monthly rent carries absolutely no tax advantages.
Rental payments continue on a month to month basis without any end in sight. But every mortgage payment helps the homeowner pay down the principal and interest amount owed on the home every month. Eventually the home becomes paid in full with no more monthly payments that have to be made. This allows the homeowner to live rent-free once the mortgage is paid in full, allowing them to have more disposable income to use on travel, luxuries and other amenities that otherwise would be spent on housing.
About the Author:
First Alliance Home Mortgage is New Jersey's premier Mortgage Banker/Broker. Their experienced Loan Officers provide clients with the latest information on special government programs, equity acceleration, and how to choose the type of loan that best suits their needs. http://www.fahmloans.com
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