Why should I buy a home instead of renting?
Good Morning Future Home Owners!
Welcome to Your Real Estate Academy.com where you will discover everything you wanted to know about real estate but were afraid to ask, this is your place to ask me all your real estate questions.
My name is Debbie McGrann and I am a real estate agent and team leader of the REAP Advantage Team with Coldwell Banker Realty. My team and I are honored to help you.
The question of the day is WHY? WHY should I buy a house instead of renting?
This is the most important question to understand before you start your house search.
You are probably hearing from you family, friends and co-workers that “renting is a waste of money and you should be a house”. But Why?
Think about what happens to your rent:
Your pay your landlord your hard earned money
Your money helps your landlord pay for the house/apartment he owns
He gets tax benefits from your money
He can sell the house you are renting at anytime and you have to move
He makes money for his family when he sells the house you are renting
What benefit do you have from renting?
NONE
You pay your rent every month, let’s say $1,500. At the end of a year you have paid $18,000 and get NO benefits.
The reason you should buy a house is so you can get all the benefits of owning instead of giving those benefits to your landlord. You pay your mortgage, you get the tax benefits and you make money as your house increases in value. Over time, you are creating wealth for your family by owning your home.
WEALTH is the reason you should buy a house instead of renting!
It is very difficult to create family wealth by renting instead of buying your home. That is why home ownership is so important for families.
FREEDOM is another reason you should own your home. The freedom to have as many pets as you want. The freedom to decorate your home anyway you and your family decide. The freedom to have quests stay with you for as long as you want. The freedom to enjoy your property as you like, to have parties (my Dad advice was to always invite the neighbors to your parties so they are not bothered by the noise and won’t complain!)
SECURITY. If you own your home, it can not be sold forcing you to move. If someone in your family needs to live with you, you don’t have to ask anyones permission to have them stay with you.