For the majority of people, mortgages have represented the only way to home ownership. However, with the increasingly difficult access to mortgages, more and more people forget about their dream of ownership and consider renting a home instead. Yet, there are still ways to get reasonable mortgages and pay for your home instead of paying rent on a home that you do not own.
There is often a heated debate when it comes to discussing the advantages owning vs. renting a home. Despite a common misconception, owning a home can be just as affordable as renting one. All it takes is a fair comparison of your owning and renting costs, as well as a true assessment of the mortgages available to you.
Here are some advantages of owning versus renting a home, which may remind you why 69% of people in North America are homeowners and not renters:
- Building Equity – When you consider mortgages versus renting, you basically choose to pay your home while building equity on it. As you make payments, you actually reduce the principal and watch your share in your home increase with each payment. That is building equity. The main advantage of building equity is that it facilitates your plans for retirement or saving money for your children’s education. Once the payments to your home become an intrinsic part of your life, you can plan for other important things knowing that in the end you will have your home’s equity.
- Tax Advantages – Mortgages are often synonymous to tax advantages as both mortgage interest and property taxes can be deducted from federal income taxes. From beginning to end, your mortgage means tax savings. If you make the calculations, it will show you that owning a home is cheaper than renting one.
- Stable Payments – Mortgages, especially those with a fixed rate, entail making relatively the same payment every month for the entire term of the loan. Sometimes, property taxes or insurance costs may slightly affect the monthly amount, yet the fluctuation is small. On the other hand, renting a home does not at all involve stabilizing your payments. Your rent is not only in the hands of the landlord, but also in the hands of inflation.
- A Sense Of Community – Renting lacks a fundamental aspect, which is that of belonging to a community. When you are a renter, you will always feel like an outsider as you and your neighbors never know how long you are going to stay in that particular place. Owning a home allows you to get involved in the community and get that sense of community, which is unique and wonderful.
- You Own an Actual Home – When you own the place where you and your family live, you start investing in making the property a home, and not just a house that provides you a roof over your head. With a rented property, you are not usually allowed to make major changes to the home you are renting to make it your own.
If you think owning a home will cost you more than renting, it’s time to reconsider. Taking on a mortgage can often be less expensive and offers more security than shelling out rent each month for a home that belongs to someone else.