5 Reasons buying a home is better than renting
1 – Mortgages are inexpensive
Currently, mortgages continue to be inexpensive. In many cases, it is actually cheaper on a monthly basis to own a home rather than rent.
2 – Your life, your way
Want to get a family pet? Go for it! Want to landscape your yard, put in a pool, add another bedroom, or remodel your bathroom or kitchen? These are some things that are out of the question in virtually any rental situation.
3 – Improved credit
Mortgage providers will certainly report to the credit bureaus, and a rental company will almost never. There is nothing better on a credit report that demonstrates financial responsibility and general stability in life better than a long history of on-time mortgage payments.
4 – Equity
Having equity that can be tapped into if necessary is a big plus for homeowners. Having equity in your home is not only important to help pay emergency expenses, home improvements, or your child’s college tuition, but simply having the equity available to you makes it much easier to get a loan for almost anything else.
5 – Owning is better for your financial health than renting
While owning your home may only provide 3%-5% annual return on a long-term basis, this is still far better than paying out hundreds of thousands of dollars and not building any equity whatsoever.