Purchasing a house is one of the biggest financial decisions you’ll likely ever make. You’ll probably spend a lot of time researching, saving, and planning before you jump into homeownership.
As you start to think about buying a home, it’s normal to wonder if buying or renting is the better option. Get an idea if buying is right for you with these five reasons to buy a home instead of renting.
1. You Can Customize It
Have you ever lived somewhere and wished you could change something about the space? Whether you want to update the bathroom or change to energy-efficient appliances, you’re limited if you’re renting.
When you own your home, you can customize your space to be exactly what you want. You won’t need to ask for permission to paint the walls or hang a picture. You can even make major changes, like completely redoing the landscaping or knocking down walls.
Customizing your own home isn’t only about personal tastes. As a homeowner, you can invest in your property. For example, you could consider adding solar panels to decrease energy costs and lower your carbon footprint.
2. You Get Tax Benefits
Renters pay money to their landlord each month and don’t expect any financial benefits in return. Homeowners, on the other hand, can usually save money on taxes with deductions specifically for people who own their houses.
After purchasing a home, you can deduct your mortgage interest payments on your taxes, up to a certain limit. You also could be eligible to deduct the cost of improvements to your home, such as projects to increase your home’s energy efficiency.
If you decide to sell the house in the future, you might be able to avoid federal taxes on the earnings you make from the sale. Be sure to talk with a trusted tax advisor about any potential tax benefits of homeownership to make sure you qualify.
3. You’ll Invest in the Future
When you’re renting, your monthly rent payment gives you access to your rental, but it doesn’t help you own your home. Each mortgage payment, on the other hand, brings you closer to paying off your mortgage. Once your home loan is paid off, you’ll no longer have a major housing payment and will probably see a big drop in your living expenses.
On top of lowered housing costs in the future, you’ll probably make money on your property over time. Most homes increase in value as the years go by. That means your house has a good chance of being worth more than you paid for it when it’s time to sell.
A lot of people consider buying a house a safe investment, but like most investments, it’s not guaranteed. Be sure to consider factors, like location, that could change the value of your home.
4. You Don’t Have to Deal with a Landlord
A lot of landlords make renting easy, but even the best can butt heads with their tenants from time to time. You might want to get a dog, but the landlord doesn’t allow pets. Maybe your toilet isn’t working right and your landlord keeps putting off calling the plumber.
If you own your home, you don’t have to contact a landlord for anything. You can get a dog or hire a plumber whenever you choose. You also don’t have to worry about sudden changes to the rules or the possibility that your rental will go up for sale.
5. Your Fixed Mortgage Payment Won’t Go Up
Rent tends to increase with inflation. Renters are stuck dealing with increases to their rent. For many renters, that means a higher rent payment each year. You might decide to look for a new place to live that costs less. That means you have to deal with applying for new rental properties and packing and moving to a new place, which could impact the total amount you save by moving.
Buying a house instead of renting could help protect you from inflation. Choosing to buy a home with a fixed-rate mortgage means your monthly mortgage payment won’t increase. Depending on your home’s price and your interest rate, you might even end up paying less than you would renting a property.
Protecting Your New Home
Buying a home instead of renting is often a good idea. Be sure to weigh the benefits of buying over renting before you sign a new lease or start looking for a home.
If you do decide to buy a place, you’ll need to find homeowners insurance. A homeowners policy protects your belongings in case of theft, fire, and other disasters. It also helps protect you from liability if an accident happens on your new property.
Learn more about protecting your new home with homeowners insurance today.