Owning Versus Renting Your Home

There are many reasons why you should own versus rent your home. Home ownership offers many financial as well as personal benefits. In most situations it is definitely better to opt for owning your home. This article discusses why you should own versus rent your home.




The first reason as to why you should own versus rent your home is the tax write off on the mortgage. You can take a deduction for the interest you paid plus points (on the first year only) on your income tax. This can be a significant deduction. On a $117, 000.00 mortgage at 7.25% interest your deduction is about $7,000.00. It makes for a nice tax return. Even on a $100, 000.00 at 4.25%, your deduction is about $4,000.00. No matter how you look at it, it pays to own versus rent your home as far as a mortgage write off goes.




Another advantage to home ownership is the property tax write off. Property taxes are an allowed deduction. If you are paying $5,000.00 a year in property taxes then that is a write off. So now we have two really good reasons as to why you should own versus rent your home; the property tax write off and the interest on the mortgage write off.




Tax write offs are not the only reason to own versus rent your home. There is equity. Assuming that you bought your home looking at it as an investment as well as a residence, your home will appreciate over the years. As you pay off your mortgage and property values continue to rise, your home is making money for you. This is something you can use for retirement or to pull out when needed. Home ownership also looks very good on a credit report. It is easier to get a loan when you can show a lender who is willing to loan you hundreds of thousands of dollars. It makes getting car loans and credit cards a much simpler task.




Finances are not the only reason why you should own versus rent your home. There are personal reasons as well. The best thing is that there are no rules as to how you can decorate. You can paint, wallpaper, hang pictures, change out carpet, and pretty much make the house truly be your home. Most landlords have restrictions, especially about paint color, wallpaper and putting nails into walls. Another reason to own is pets. If you have a pet, life is much simpler if you own your home. Cats will scratch carpet, dogs will chew, fish tanks leak, and little critters get loose. Even the best behaved pet gets sick or has an accident once in a while. If you own your home, you take care of the damage and that’s it. If you are renting, then you run the risk of losing a deposit plus having damages added on. Having things your way is why you should own versus rent your home.




Finally, home ownership offers security. A landlord can pretty much evict you at will. Even with a lease, you are not always protected. Properties get sold, tenants get evicted. It is so much simpler to own your home and avoid these issues. Privacy is another reason. Landlords can send the exterminators, painters, and other maintenance people in at will. You are required to give them access. If you own your home, you have total control over who comes in and out of your residence.




There are so many reasons home ownership is preferable to renting. The tax advantages and not having to deal with landlords speak volumes. One final note, it may actually be less expensive on a month to month basis owning your home. Looking over all of these reasons, you can see why you should own versus rent your home.