Buying a house versus renting a house
Buying a house protects you from rising rent prices
You've probably heard the saying, "rent money is dead money." Well, it's true! Renting a house every few years will cost you more than buying one. If you rent, eventually you'll want to buy anyway because of how expensive renting can become. As opposed to buying in cash, when you rent, the landlord gets taxed on your behalf and passes along those taxes in your monthly payment. So by renting instead of buying and paying a mortgage over time as well as paying taxes on that mortgage interest deduction each year—the sum total of which makes buying an even better option—you're paying more than just rent!
You can make your own home improvements in a house you own
If you own a house, you can make your own improvements to the property. You can change the color of the walls or add new floors. You can make your house look the way you want it to look and make it feel like home. There are no restrictions on what you do with a house that is yours, and this is an important aspect of owning rather than renting.
Selling a house requires a lot more preparation than renting an apartment
As a real estate agent, I'm often asked what the difference is between buying and renting a home. There are several factors, but here are some of my favorites:
When you buy a house, you have to be ready to show it to prospective buyers at pretty much any time. You don't want them showing up while you're on vacation or otherwise out of town!
Renting an apartment doesn't require any preparation on your part. If someone wants to see it, they can schedule an appointment with the landlord or property manager.
When it comes time to sell your home, however, there are some key steps that will ensure your property sells quickly for top dollar—and without headaches along the way.
Owning a house is less flexible than renting an apartment
There are a few reasons why owning a house is generally less flexible than renting an apartment. If you have to move, it's much more difficult to get rid of your house than it would be to just move out of your apartment. And even in the best-case scenario where you can sell your home quickly and at a reasonable price, finding somewhere else for you and all your stuff can take time and money. Renting an apartment provides more flexibility because it's so easy to move—just load up some boxes into the car and go!
Not only does owning a home mean that moving is harder, but there are also tax implications that make changing locations difficult as well. When buying a home with cash, sellers must pay capital gains tax on the sale; this means that if there were any profits from selling their property then they'd have to pay taxes on them too! Rental properties have no such requirement though since rent isn't considered profit (it doesn't generate income).
Houses are harder to clean and maintain than apartments are
Houses are harder to clean and maintain than apartments are.
Houses have a lot more space to clean, which means you have to spend more time on it. If you don't have the time, you can hire someone else to do it for you—but that costs money.
Houses also have a lot more space to maintain: lawns need to be fertilized and mowed regularly; gutters need cleaning; roofs need repairs from time to time; walls need repainting at some point in the future. And all these things cost money—either with hiring someone else or buying materials yourself.
Buying a home benefits you financially in the long run
You can build equity. When you own a home, you're building up equity for the future. Your house's value will likely go up over time, and when you sell it in the future, that profit is yours to keep.
You get tax deductions. Many people don't realize that buying a home comes with many tax deductions. For example, homeowners can deduct their mortgage interest from their taxes every year (up to $750k on new mortgages). They also get to deduct property taxes every year as well (up to 1%). Plus they can deduct points and origination fees if they use an FHA loan or any other loan that charges these fees when purchasing the home or refinancing their mortgage loan!
Homeowners can also take advantage of other tax breaks such as being able to deduct repairs made during ownership like fixing broken windows or doors or even replacing flooring throughout entire rooms within one structure instead of just underneath each room separately like most renters do today."
The benefits of owning your own home outweigh the risks
Owning a house is worth the risks.
Renting can be an expensive way to live, and people often think that buying a house is cheaper than renting. This may be true for some people, but it's not always the case.
