Why Owning Is More Advantageous Than Renting
The debate over renting vs owning a home has been raging for decades. If you’re wavering between renting and purchasing a home, know that buying is the better choice. Owning your own property is more advantageous than renting a place. Here’s why:
When you buy a home you get access to the most important thing it offers: equity. This is the value of your home and it belongs to you. You can tap into that equity whenever you want and use it for whatever you need. When you rent, you cannot access the equity of the property because it’s not yours. Your landlord however, can and will.
Renting a home may seem like a good idea until you want to make changes to it. Anything you want to do to your rented home has to be approved by your landlord. Everything from removing carpet to painting a wall needs to go through the landlord first. If they don’t like your design idea then you’re stuck living with maroon walls and 70s shag carpeting. On the other hand, if you own your home, you can decorate it as you see fit without getting approval from anyone.
If something in your rented home breaks or stops working, unless you are trained repair professional, you will have to call the landlord. Then, the landlord has to come and assess the damage before getting someone in to fix it. Your landlord, may also charge you for the repair if it’s something that you did even if it was accidental. When you own your home and something breaks, you do pay for the repair out of pocket but you don’t have to wait for a landlord before getting it fixed. Additionally, you have control over who you hire, giving you the opportunity to set limitations on cost.
When you rent a home you’re paying a landlord to use their property. When you own a home, the only payment you’re making is on your mortgage. Also, mortgages can be used to consolidate debt and take your credit card, car loan and lines of credit and turn them into one easy payment. You cannot ask your landlord to do that!
Renting a property comes with a lease that has to be renewed at an agreed upon time. When your lease is up for renewal your landlord could decide that he wants to raise the rent or worse, get new tenants leaving you to find somewhere else to live. When you have a mortgage on your own home, there’s no lease and renewing your mortgage is easy.
If you’re looking to purchase your first home, we can help. At PrivateLend.com we specialize in everything involved with the mortgage process. Whether you have good credit, poor credit or no credit, we’ll find the right mortgage package.