The dilemma of buying over renting a home has been an issue for many people. The idea alone of buying a home can be extremely overwhelming and many don't know where to start. This is one of the largest investments a person can make in their life, and that scares us. However, if you look at studies of buying over renting, the choice seems clear. Obviously part of the "American Dream" is to own one's home. The number one advantage of owning your own home pertains to equity. We all want to build our individual equity throughout our lives'. For those who have decided to rent, your monthly rent payment is adding to your landlord’s equity. Simply put, "If you rent, you are throwing away your money". And in this economy we all want to get the most out of our money. When you own your own home, over time, you increase your equity in the home as you continue to pay your mortgage.
Another advantage of buying over renting a home is that you can lock in your monthly payments, keeping it fixed over time. And as we all know, the value of a home continues to appreciate throughout time. So you make an initial investment in a property that will continuously gain value as time goes on. Then, later in life, when you are ready for your next adventure, you can sell your home and make a profit.
One of the great freedoms of owning your home is that it is "your" home. It is your property to do with what you want. You can continue to make improvements and renovations to increase value. When you walk into a home, everyone critiques it and has their own vision of what they would do to make it their own. Our ideas are what make us unique and different, and owning your home allows you to express that.
These principles are crucial when making the decision of buying over renting a home. You must ask yourself, "What will improve my way of life?”