Buying a Home vs. Renting a Home

Why buying a home is better than renting

If you’re considering buying a home, you’re probably wondering if it’s better to rent or buy. While this decision involves numerous factors that differ from person-to-person, there are more significant benefits to home ownership in most cases. In this article, we’ll explore reasons why homeownership can provide greater financial security and stability in the long term than renting.

You get a break on your taxes.

Home owners get to deduct property taxes and mortgage interest when it comes time to file year-end taxes. This deduction could make a bigger difference in your taxes than you may think!

It holds true that homeowner save an average of $1,500 per year by claiming these tax benefits related to home ownership. Of course, your deductible expenses and savings will depend on your unique personal qualifications and circumstances.

The Internal Revenue Service (IRS) has created an online calculator to help users determine if they qualify for certain types of deductions if they do decide to purchase a home.

You’ll build equity over time.

When you rent, the landlord who owns the property generally reaps all the financial benefits. When you think about how much of your hard-earned money goes out the door as a renter, pursuing home ownership is particularly appealing.

Unlike renting, purchasing a home is an investment that can help build wealth in the form of a tangible asset. The benefits of homeownership are many. While renting provides a place to call home, home ownership can provide that and so much more—in the form of financial benefit. Assuming normal market progression, buying allows homeowners not only to recoup their initial investment, but also build equity over time through appreciation.

You’re building an investment, not making payments to someone else.

Buying a home has a lot of advantages over renting. Not only do you get to choose your place, but you’ll also reap the benefits of investing money rather than lining someone else’s pockets.

While rent essentially is paying someone else for use of their property, purchasing a home gives you a chance to build equity over time. If you decide to sell your home down the road, you’ll likely reap the rewards of increased market value. Once you fulfill the terms of your loan, any remaining funds are available for you to spend on your next home or whatever else you wish!

It’s easier than you think to qualify for a mortgage.

You may have been told that it’s difficult to get a mortgage with a low credit score, but you may be surprised. You can get approved for a mortgage even if your credit history is less than perfect. In many cases, if your income is less than the amount you owe on your credit card, that’s okay too! Mortgages are based on two factors: Your ability to repay the loan and the value of the home itself.

It’s still important to work on repairing your credit as much as possible. It might take some time before it begins to improve, if you’re starting with significant debt or other negative marks on your report. The first step is pulling your credit reports to check for accuracy. Then, begin paying down any debts you have as quickly as possible without missing or defaulting on other payments. Finally, apply the 20-10 Rule. Follow this step-by-step guide to get ahead.

PRMI – Wooster is ready to help you!

If you’re ready to take the next step in your home buying journey in Wooster, Ohio and you have less than perfect credit, contact us today.

PRMI – Wooster has been helping clients purchase homes since 1998 and is backed by one of the most established mortgage lenders in the county with a nationwide presence. We offer a variety of loan programs for the greater Wooster, Ohio area – including Canton and Medina, Ohio. Are you looking for a trusted lender? Contact us by phone at 866.888.7902 or email Matt Shanlian at mshanlian@primeres.com.

*Opinions expressed are solely my own and do not express the views of my employer.

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