Reasons Why Owning a Home Is Better Than Renting An Apartment
Of the 88.6% of housing units occupied by the first quarter of the year, 57.9% belonged to owners while 30.7% were rented. Deciding on whether to buy a house or rent an apartment comes down to your preferences and needs. In some ways, renting could appear cheaper than owning a home because of the maintenance costs, property taxes, and repair fees that people with homes incur. Nevertheless, having your own home can be very advantageous and here are a few reasons why you should start saving for one.
It Affords One Some Privacy and Freedom
Owning a home brings you the peace of not having to rub shoulders with the neighbors. Most of the rentals or apartments are usually crowded, especially in the cities, which most times robs you of your freedom and privacy. The freedom to play loud music or throw a house party for friends. Freedom to enjoy some quiet time as you drink your coffee, tea, or wine. Freedom to read a book or meditate on your lawn without distraction or noise from your neighbors or children playing around.
Having your home means having your own yard. Additionally, owning a home gives you the freedom to customize however you feel like. You can even add a swimming pool, Jacuzzi, or a gazebo. Your children and/ or pets can have the freedom to play around and still be safe which is very important especially now with the COVID-19 pandemic still ongoing.
An example of a crowded apartment.
It Provides Stability
Owning a home improves one's stability since buying a home is a long term investment. Homeowners usually stay in one place for 10-20 years. On the other hand, people that live in rentals are always on the move.
Most of the rentals in the urban areas increase the amount of rent they charge after every two to five years by a certain percentage. For a tenant, this may be inconvenient because it wasn't something they considered when they decided to rent. At some point, rentals owners might decide to upgrade or renovate their apartments and issue tenants eviction notices where they are required to move out. For people owning homes, issues such as unpredictable rent increases and unexpected eviction notices are not a matter of concern.
It Can Act As Retirement Security
A huge percentage of seniors do not have salaries or sources of income. They depend on retirement benefits from their previous employer, the government's retirement scheme, or on their families. Most cannot afford to pay rent monthly and live comfortably without experiencing financial constraints. Purchasing a house, therefore, makes for a good retirement investment.
It Builds Equity
Homeowners who have mortgages on their houses and pay the interest end up improving their credit or equity. Over the years, properties eventually increase in value, making the equity larger and making it easier for homeowners to gain benefits such as equity loans, line of equity, and reverse mortgages. A good idea to strengthen your credit score is having a mortgage on your credit history. Each time you pay the mortgage in time, it proves that you are a responsible person, which improves your chances of getting approved for future credit accounts.
There Are Tax Benefits
Paying taxes can be quite the challenge, especially if they have accumulated for months. What people have not yet understood is that the mortgage interests can be deducted on a person's tax returns. Owning a home provides tax advantages. Furthermore, homeowners can also deduct mortgage insurance payments and other payments that relate to home purchases.
You Are Free To Customize or Renovate
When moving to a new home, one of the most common factors considered by people is whether they can alter the house to accommodate their vast preferences. Therefore, they consider checking on how flexible the rules are, because, for some rental houses or apartments, renovations that involve the drilling of walls or painting are prohibited. Homeowners can alter the design of their houses to make them feel at home or add a personal touch. In most cases, alterations may increase the property's value.
It Is An Investment
The feeling of purchasing or owning a home is something to behold but that is not all there is to it. If one decides to buy another house or move to another location, their former home could become part of their investment portfolio. Homeowners sometimes decide to rent their own homes, which gives them a stable income monthly. The income can also be used to pay the mortgage on the house. Others decide to get into real estate by buying homes and then reselling them which is a very profitable business. If properly maintained, most properties do appreciate in value. Other homeowners still, rent their homes for a short period when they are away vacationing or for work.
Having your own home has huge benefits compared to the disadvantages like maintenance fees, repairs, and insurance. It is highly advisable to start making plans to purchase a home as early as you can, whether it is via saving, making down payments, or finding the best mortgage plans. Also, research on the location, town, or community where you want to buy property. Some nice and affordable houses can be found on Movoto.com.