Should you rent or buy a home? Is homeownership better than renting? We tend to think so, and here are a few reasons why.
Homeownership vs. Renting: Make it Yours
You’re limited to what you can do to really make a rental home yours. Sure, you can paint the walls – as long as you’re willing to paint them again before you move out. You can hang up posters or wall art, but if you leave a lot of holes they may ask you to fill them before you move out.
But there’s a lot more that goes into making a home feel like it’s your place. Maybe you want to completely redo the landscaping. Or perhaps the kitchen looks old and you want an upgrade. It could be you live in the south and the house has very few ceiling fans, which just doesn’t make sense.
When you own a home, you’re able to make these upgrades. Do whatever you want – it’s your place! Your home is supposed to be your sanctuary, the place you can retreat from things like work or school to relax and spend time with loved ones. It’s easier to do that when you can make the home into whatever you want it to be.
Owning a Home vs. Renting: Build Assets
This is probably the main reason most people argue for owning a home vs. renting. When you own your home, every monthly payment builds equity and gets you one step closer to owning the home outright. It’s killing two birds with one stone – you get a house to live in, but you’re also accumulating an asset.
Over time, this growth in equity is what usually allows people the opportunity to “trade up” for their next home. For example, maybe your family has grown and you need a house with more bedrooms. If you have $50,000 in equity on your current home, that’s a 20% downpayment you can use for a $250,000 home. Because you’d have at least 20% equity in the new house, you don’t need to pay private mortgage insurance and save you thousands of dollars a year.
Your home is your biggest asset, but only if you own it!
Owning vs. Renting: Planting Roots
When you rent a home, there can be this underlying feeling that you’ll only live there temporarily. Buying a home is commitment and shows you’re planting roots.
- – You’ll be more interested in getting to know the neighbors
- – Younger kids will be able to grow up with neighborhood friends
- – Older kids won’t feel like they’re going to get picked up and moved again
- – You can get more involved in local clubs, churches, etc.
Can these types of things happen when you rent a home? Maybe, but probably not. Buying a home is a different mindset altogether, and will help you “settle in” more easily.
As you might expect, we’re fans of owning homes vs. renting. We also love to help people like yourself get into the home of their dreams, so give us a call at (562) 924-7884. We pride ourselves on bending over backwards to do everything we can to help.