While renting may be great for new couples or individuals who do not want to settle in one place, purchasing a home has a variety of advantages including:
- Tax Deductions
- Maintenance Control
- Freedom to Be Creative
When you purchase a home, you can eventually accrue equity. When you rent a home, you are essentially paying your landlord’s mortgage or increasing their equity. Buying your own home allows you to accrue your own equity, which can be borrowed against in the event of an emergency or large purchase. Purchasing a home also allows you to deduct mortgage interests and property taxes from your taxes. Owning your own house also enables you to potentially avoid capital gains tax.
Renting a home can prohibit individuals and families from making the space their own. If you own a home, you are not restricted by a landlord. Instead of using a certain plumber to repair your leaky sink or avoid using nails to hang items around your home because your landlord forbids it, you have free reign to do whatever you please in your own house. You can paint the walls whatever color you desire, add on to your home, and can either handle your home’s maintenance problems on your own or hire a contractor.
Disclosure: Synergy One Lending, its loan officers and employees are not financial advisors. All information is offered as an inducement to place a mortgage loan. Your exact circumstances as well as conditions over the life of the loan will determine your savings if any. The terms discussed are for example and may not be relied on. Please consult with a tax professional to determine your savings if any.