Buy a Home rather than Rent? Yes, here’s Why…

It isn’t unusual for people to think that renting is less expensive than buying a home. While in some cases it may be true that home buying is more expensive, it is also true that a large majority of renters overlook many of the hidden costs associated with renting. These costs alone are often significant enough to make home buying a more financially sound investment.

Equity

. Right now, there are record numbers of households who rent, which is leading to few vacancies and rental fees are skyrocketing. When renting, you create equity for your landlord with every monthly payment. When you decide to move however, there is nothing to show for the money that you’ve paid. When you purchase a home, if you stay in there you will own it eventually and have no monthly payment. Even if you choose to move before the mortgage is paid off, you have reaped other benefits during the time you lived there. Take into consideration as well that in most cases the value of a home increases over time and that any improvements done will add to that increase.

Save on Income Tax

If your income exceeds a certain amount and you rent, your taxes are more than they would be if you owned a home. Home buying enables the home owner to deduct not only the amount of their property taxes, but the interest paid on a mortgage as well. When you rent, your landlord reaps those benefits rather than you.

Home Improvements

When you own your home, any improvements serve to increase the value of your investment. When renting however, many landlords require that any changes to the property must meet with their approval. In addition, even if you do get approval to make certain changes or improvements, you probably won’t be reimbursed for the costs even though you are adding value to your landlord’s investment. In some cases you may even have to pay to restore the property to its original décor before you move.

Lost Security Deposits

Anyone who is experienced with renting knows how easy it can be for your landlord to refuse to return a security deposit or pet deposit. No matter how careful you’ve been, there always seems to be a reason for the landlord to keep all, or at least a portion, of the deposit you paid and he or she usually has the final word in the matter.

Home buying is a huge decision and one not to be taken lightly. While renting may seem more convenient and less expensive, it isn’t always the best choice. Doing some research into the local real estate market is always wise and you may be surprised at the results. A great place to start your research is by looking at sites such as www.stonemountiangeorgiahomes.com and getting an overview of home prices. Once you’ve done that, contacting a real estate agent to work with you can get you on your way to owning a home and saying goodbye to overpriced rentals forever.