Renting vs. Owning - Why you should buy a house instead of renting

As you evaluate whether renting vs. owning a house is best for you, there are several pros and cons you’ll want to weigh. While you’ll have to manage home maintenance when you own the home, you’ll also have the freedom to upgrade and improve it in line with your preferences and style. Not to mention, you’ll have an investment that you can sell for a profit if you manage your real estate properly.

Renting certainly has its advantages, but overall, owning a home is far more beneficial for most people. Here’s why.

Why You Should Buy a House Instead of Renting

Homeownership allows you to create the design you want while making it functional for your needs. You can take pride in your home ownership. Here is a list of reasons why buying a home is better than renting one.

1. Owning a Home Provides Stability

If you’ve rented a home, you’ll know there is little stability. The landlord can raise rates regularly, require that you let maintenance workers inside at inconvenient times and put off maintenance while you still have to live in the home.

And once your contract is up, the landlord can choose to sell the property or otherwise force you out.

But when you own the home, you have stability in knowing where you’ll live for many years. While your payments can increase due to the cost of property taxes and homeowners insurance, these generally increase slowly over time.

And when you need home maintenance, you can get it done as soon as you want to and on a timeline and budget that works best with your schedule.

The longer you live somewhere, the more community you can build in the area as well. Getting to know your neighbors and knowing that they are looking out for your property when you are away is a great benefit of home ownership that you likely won’t experience with renting.

2. Home Ownership Can Serve as an Investment

You can build equity in your home. As you make mortgage payments, they aren’t just sunk costs. While you’ll pay property taxes, insurance and interest payments, part of your monthly payments will also go toward your principal, which builds equity in your home.

When renting, you’re paying money to stay somewhere, but you’ll never see that money again once you choose to move elsewhere.

3. Ensure Energy Efficiency in Your Home

You’re in charge of your home, which means you can improve your energy efficiency to lower your utility bills. Renters have no control over this aspect of their living space, which means they are stuck paying whatever utility bills they receive no matter what.

With home ownership, you can choose to add solar panels or upgrade your roof to a more energy-efficient option. Or upgrade your windows for a better seal, fewer drafts and improved efficiency.

4. Possible Tax Advantages

You can deduct mortgage interest payments from your taxes. You might also be eligible for certain tax breaks in your area based on energy efficiency upgrades you make. To maximize your tax advantages, follow federal and local incentives closely and try to upgrade aspects of your home when an incentive is active.

5. Option to Add an Income Stream

When you own a property, you can create added income streams using the property. Maybe that means listing your home on Airbnb when you’re away on vacation or perhaps you have a room you can rent out all the time. Some homes come outfitted for renting out part of the property for vacationers, which means the home is equipped to offer another income stream.

Choose your property strategically if you’re hoping for rental income. As you look at properties consider how you might rent out the space without disrupting your life. For example, a home with a walkout finished basement could be ideal for renting out because the renter will have a private entry point.

6. Stable Schooling for Your Child

Families find that owning a home is far better when they have school-aged children. When renting, outside forces might mean you have to move frequently, which can mean new schools for your children. Regularly changing schools can be disruptive to a child's overall learning experience. Homeownership can help you avoid that by allowing you to stay in one place until your child finishes their education.

Buying Real Estate in Charleston, South Carolina

If you’re convinced that home ownership is the right move for you, contact The Robertson Team. We’re a skilled team of real estate agents ready to help you find the best home based on your unique needs and preferences.  Contact us now to learn more.