To RENT, or to OWN, that is the question. The choice between buying a home and renting one is among the biggest financial decisions that many adults make. Here are some of the things to keep in mind when you weigh the benefits of renting against the benefits of owning, both from a personal perspective and a financial one.
Owning a home can give you the freedom to make your house your personalized home. As a home owner, you have full creative control. Do you love hanging tons of artwork? Feel free, the walls are yours! Have you always dreamed of having the perfect accent wall? Go ahead, get creative! Outdoor oasis to host stellar dinner parties? The land belongs to you, plant that garden and lay those stones! You have control of what happens in and around your home.
Owning a home can also provide a chance to increase your personal wealth as you pay off your loan over time and build equity. When you pay rent, you are paying your landlord’s mortgage or adding equity to his or her bank account. However, when you have a home mortgage, you increase your degree of ownership in your home with every payment.
Owning a home may also provide you with income tax benefits, though it is important to check with your tax adviser.
As with any major financial decision, the better choice for you depends on your circumstances.