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Rent vs. Buy
There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Several reasons you may want to own rather than rent.
Bottom Line
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Several reasons you may want to own rather than rent.
- You're paying for housing whether you own or rent.
- There are substantial tax benefits to owning.
- Owning is a hedge against inflation.
- Mortgage payments can be fixed while rents go up.
- Equity in your home can be a financial resource later.
- Financial Investment: Opportunity to grow your assets & wealth.
- Privacy: Having a space that is solely your own.
- Stability: Having control of your future direction & security.
Bottom Line
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.
