3 Financial Advantages of Buying vs. Renting a Home

The stack of papers seems like it will never come to an end, but as you sign your name on the last one, you’ve realized the dream of millions of people.

You’re now a home owner.

Owning as opposed to renting comes with some long-term financial advantages.

Taxes  No one likes paying them, but home owners enjoy certain perks when tax time rolls around. While you can’t deduct the cost of repairs or improvements to your home, you can deduct the real estate taxes and mortgage interest you pay, potentially saving you hundreds of dollars in taxes.

Appreciation  Many of the things we buy start to lose value as soon as we get them. Houses are a pleasant exception. In many cases, if a home owner decides to sell, he or she can expect to get more for the property than they originally bought it for.

Home Equity  A home is a valuable asset. If you find yourself in need of a sudden influx of cash, maybe for an emergency or for a potential investment opportunity, you may be able to use your home as collateral to secure a loan. Banks see home owners as more financially stable, so they will often offer better lending rates than renters get.

Owning a home is more than just having a place to call your own. It can be a valuable investment for your future.