While renting your home may be the better option if you’re not planning on staying put in one area or if you’re trying to build up your credit, buying your home definitely has its advantages in these stronger economic times. First, buying your home can actually be cheaper in the short term thanks to fixed-rate home loans, where you have more control over your monthly payment. If you’re renting, your landlord has the ability to raise your rent at the end of your lease. Moreover, with regard to home loans, thanks to different loan programs such as VA, USDA and FHA loans, as well as down-payment assistance programs, it can be cheaper in the long run to buy a home.
Another financial consideration with regard to buying a home is that home ownership provides tax benefits that leasing a home doesn’t. For example, being able to declare interest costs in carrying a home loan, as well as building equity in your home are benefits that homeowners enjoy. In addition, the market for homes is enjoying an upward trend, so the financial rewards for investing in home ownership are evident once again. Most importantly, homeowners have full control over whether and when they want to sell their home, while landlords hold this power over renters, potentially deciding to sell their home for financial reasons such as retirement or foreclosure.
Finally, buying and owning your own home gives you the latitude to decorate and remodel your home in a way that maximizes your day-to-day as well as long-term enjoyment of your home. Renters must run any changes to décor or landscaping by their landlords, while the sky is the limit for homeowners who can make changes designed to increase their home value as well as to reflect their own personal tastes.
Source: Brown, D. (2015, September 25). AZ Real Estate. The Arizona Republic. Retrieved from http://www.azcentral.com.