The decision to rent or own can be a difficult one. There are benefits to both, but in some situations, one may be clearly better than the other. We think that, for some families, it is better to purchase and own your home outright than to rent. Check out our list of reasons why and see if they work for you.
An Investment in Assets
If you’re going to be in the same place for several years, chances are you’re going to spend several tens of thousands of dollars on rent and that doesn’t include utilities or any repairs you might do. By the time you’ve paid that much rent, the money you’ve spent could’ve paid for a big chunk of a mortgage. When your lease is done, all of the money you’ve spent on rent is just gone– you have nothing to show for it other than rental history. When you buy a home, however, every dollar you pay is a dollar towards a massive asset– your house. Houses are huge investments to be sure, but when all’s said and done, you own property that is worth a lot of money. Renting is ideal when you’re in a temporary situation, but when it’s time to settle down, buying outright makes a lot of sense.
Freedom to Make Changes
The terms of your lease probably prevent you from making major changes to your property. This can be a deal breaker for DIY aficionados who want to make updates and improvements. Although some landlords will work with you on this, others won’t. If you know you enjoy doing repairs and updates on your home, you may be better off to go ahead and purchase your own home instead of renting. That way you can make the changes you want without having to run them by your landlord first.
No Fear of Lost Deposits
Renting can require a lot of money upfront, because there are often damage deposits, pet deposits, and other fees that are “technically” refundable– as long as your landlord is happy. All too often, when you move out, your landlord will decide that the property isn’t up to his standards, and the several hundred dollars you put down are gone. You don’t have to worry about this when you own your own place. If there is slight damage from a pet, like a stain on carpet, you may be fine living with it for a while until you can get it fixed. You won’t run the risk of your landlord coming in and finding the damage before you can fix it.
Like we said, there are times where each makes sense. Choose the best option for your situation and love the home you live in, whether you’re renting or own it.
