Determining whether to rent or to buy is a major decision and one that is not easily determined. In order to help you make the decision, we provide you with a calculator that will tell you exactly what the numbers are in renting versus buying a home. Go to the Rent Vs Buy Calculator.
Here are our Top Ten Reasons why people buy homes.
#1: Building Equity
The money you pay towards your rent, is money you will never see again. But when you own your own home, the money you pay towards your mortgage is money that is paying down the balance owed on your mortgage, which is money in your pocket.
#2: Pride of Ownership
Most people buy homes to have control over where they live. Although investment features are important, the psychological reasons for buying?the satisfaction of owning and freedom from paying rent?are at least as important.
#3: Dislike Paying Rent
Close to 7 in 10 of almost equal portions of owners and renters expressed a dislike of paying rent as an important reason to buy. Renting offers a lifestyle that's nearly maintenance-free. That may appeal to you, but consider that renting offers you no equity, no tax benefit, and no protection against regular rent increases. Writing a rent check is just like watching your hard-earned money sail away!
#4: Settling Down
More than 6 in 10 renters said "settling down" was an important reason to buy.
#5: Good Investment
76% of owners and 69% of renters said that the investment aspect of ownership was important.
#6: Tax Advantages
Property taxes and qualified home interests are deductible on Schedule A, for itemized deductions.
#7: Long-Term Appreciation
People consider homeownership a good investment because they view it as a long-term venture. Historically, home prices have risen at relatively steady rates. Existing home prices rose an average of 4% per year between 1980 and 1992.
#8: Leverage Investment
People borrow a great deal to buy homes, yet they receive the full benefits of price appreciation. In the long run, investments in homes far outpace inflation rates.
#9: Source Of Savings
Homeownership always has been and continues to comprise the single largest source of savings for American households. Homeowners build equity and can borrow against it.
#10: Sacrifices Are Worth It.
Almost 7 in 10 renters in the National Association of REALTORS homeownership survey said that they planned to buy a home in the future. More than three-quarters of these people said they were willing to sacrifice to do that.