What is the difference between renting and owning? A rental payment vs a mortgage? We’re so glad you asked. Let’s start with the biggest difference, which is who owns the property. Is it you or someone else? If the answer is you, then you are paying a mortgage. A mortgage is a loan provided by a bank to help you purchase your own home. In exchange for the money to purchase the house, you pay them back over time with interest. These payments typically last anywhere from 15-30 years. Just like a mortgage, rent is paid on a monthly basis. Instead of paying your mortgage lender, though, you’re paying the owner of the property you live in.

Renting a property doesn’t come with all the responsibility that owning a home does, since you aren’t tied down to the property. Your choice to either rent or buy depends on your financial situation, lifestyle, and personal goals. Renting provides you with flexibility, anticipated monthly expenses, and someone to handle repairs. There are no penalties to move at the end of your lease when you are renting, which can be great for those who are constantly on the move. With homeownership, there are several emotional benefits, such as a sense of stability and pride. Homeownership can also provide one with tangible benefits, such as tax deductions and equity.

An emotional benefit of homeownership is that it can increase one’s sense of community. Oftentimes with renting, it’s hard to feel like you are part of something bigger. Owning a home can also create a sense of security, as you’re able to increase your privacy. With renting, landlords can schedule inspection appointments or show up for repairs at inconvenient times. When you own your home, it’s up to you who comes and goes and when they do so.

Your home is your canvas! When you own your home, you get to choose what it looks like and create the home you’ve always wanted. This can look like:

• Painting the walls
• Hanging up whatever you want on the walls
• Getting creative with landscaping or start a garden
• Renovating that dream room of yours

In the long term, homeownership can be a valuable asset for many reasons. First of all, buying a home can increase your financial stability. Without the threat of rent fluctuations, you can now focus on saving for things like:

• Retirement
• A car
• Travel
• Emergencies

Plus, you won’t need to worry about when your next move will be or when you need to renew your lease. You are the homeowner – you get to make those decisions on your own now. Owning a home may also help reduce your tax burden, while renting does not. If you own a home, you may be eligible for one of the tax breaks the IRS offers to homeowners:

• Mortgage interest payments
• Property taxes
• Mortgage points
• Energy-efficient home improvements

You’re also making an investment when you choose to buy, as opposed to renting. Each time you make a mortgage payment, you are adding to the value of your home equity. In addition to building equity, most homes increase in value over time. Whenever you decide to sell years down the road, this means you may make a sizable profit.

With so many benefits, it’s clear the obvious choice is to own a home. If you’re curious how to stop paying someone else’s rent and start the process of becoming a homeowner, reach out to us today!