How Does Purchasing a Home Compare with Renting?

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1. Purchasing vs. Renting

Purchasing vs. Renting

To be quite honest, purchasing a home and renting don’t really compare at all.

The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity take advantage of tax benefits and protect yourself against rent increases. Also, you may be at the mercy of the landlord for housing.

Owning a home has many benefits. When you make a mortgage payment, you are building equity increasing your net worth. Think of owning a home as a huge investment. All the money that used to go to your landlord, now gets invested into you!

Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities like insurance, real estate taxes, and upkeep which can be substantial. But given the freedom, stability, and security of owning your own home they are worth it.