There are some renters that have not yet 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. When you own your own home, you get many benefits, from being able to do with it as you want, not having to ask a landlord every time you might want to paint a wall or do other things. It is yours!
Also, every month when you make your own mortgage payment, you are accumulating wealth through the equity earned living in your own home, not paying a landlords mortgage, but your own. As the market gets tighter and people are getting more for their homes when selling, you get nothing when you rent. You can deduct your mortgage interest from your income taxes. You can’t when you rent.
I am a Realtor, licensed in both Ohio and Kentucky, specializing in Greater Cincinnati and Northern Kentucky for the past 14 years. Please let me help you with any questions you might have or help you either list your home or help you search for a new one.
As The Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.
That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
Christina, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:
“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”
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.
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.