The REAL Benefits of Owning versus Renting

Let me start out by saying that sometimes - you just have to rent. As a former renter myself for many years, I know that firsthand.


Be it lack of credit, marriage/divorce issues, life changes...there are times when renting really is the best option. 

However, life goes on and situations eventually change. And when they do change, you should know why it's important to consider buying your own home as opposed to paying monthly for your landlords' home (i.e.: rent).

So here, in no particular order, are the benefits of owning your home versus paying rent:

Being part of a community - as a homeowner, you have an inherent interest in what is going on in your neighborhood and town. More so, than if you were renting. The pride of ownership is a big part of this, because you want where you live to look good, and be good for yourself, your children and your neighbors.

Building equity (read "Making money") - as a homeowner, your home is considered real property. It has a value that can go up and down, but mostly up. Even when the economy is doing the loop-dee-loop, your home is your home. If you had purchased a home in a new subdivision in 2003 for say, $150,000; the market value of your home today (2012) would still be at least $189,000. (If the housing market hadn't dropped, that same home today would be worth $215,000 or more.)

Consistent monthly payment - If you're paying rent, it's likely that your rent went up over the past couple of years. But nothing else changed. You're still renting the same apartment or house.  The only change is that now - you're spending more just to stay in place. As a homeowner, your monthly payment may have increased slightly. This would be due to home insurance and property taxes. As a homeowner, even with the increase - you still have benefits that a renter does not. 

It's YOUR home - You can paint the inside and outside whichever color you choose. There's no assigned parking - you'll likely have your own garage or carport that you don't have to share with the neighbors. Normally, you can play your music loud in the house and no one will complain because there's no one living upstairs or down. You can choose to plant trees or not. Or to put in a swimming pool (that you don't have to share with the entire neighborhood) - or not.

Peace and quiet - You don't have dozens of people living all around you, like you do with an apartment. With your own home, comes a yard and property lines. If you choose, you can put up a fence to keep your yard private and free of the neighbor's pets. Try that in an apartment.

Mortgage Interest Deduction (MID) - As a homeowner, if you have a mortgage, part of your payment to the bank each month includes interest you're paying on your loan. Most, if not all, of that interest is deductible on your income taxes. (Your situation may be different - but in general, homeowner's can deduct the mortgage interest paid on their homes. The best way to know is talk with an accountant or tax preparer who should know your situation.) As a renter, you don't get this deduction. While you may be paying your landlord's mortgage - the landlord is the one getting the interest deduction/tax benefits. Not you.


These are just a few of the benefits of owning your home. What others do you know of?