- BY: KATHERINE BULTEMA
- Apr 07 2023 3:54 PM
Is Owning or Renting Right for You?
A common question we are asked by first-time homebuyers who are contemplating whether to buy or not is, “What are the advantages to owning versus renting, and how do I know which option is best for me?” While there are benefits to both, in the long run, KBRG believes the benefits of homeownership far surpass what renting can offer. We put together a list of the benefits of owning a home with the hopes of guiding you to make the best decision for your goals.
A significant difference between owning and renting is your ability to build equity in your property. Equity is the difference between the value of your home and the amount you owe on your mortgage. With every mortgage payment you make, you will be building the equity in your home by paying down the principal or outstanding loan balance. There is also a strong likelihood your home’s value will increase over time, further building your equity. The benefit of building equity is an opportunity only available to homeowners. Contrarily with renting, each monthly payment you make is money you will never receive a return on.
Another financial benefit of owning a home is the opportunity to receive tax write-offs. Some tax breaks you may qualify for as a homeowner are: mortgage interest, real estate taxes, private mortgage insurance, and a home office deduction. All of these are ways you can reduce the cost of homeownership and see a return on your money.
Aside from the financial advantages of owning a home, one of the more creatively rewarding benefits is the ability to customize, renovate, and make your house a home. Many renters are limited in the ways they are able to decorate. Some restrictions, like painting and the inability to make certain changes, can limit tenants' ability to express themselves and fully enjoy the space they are paying for.
Our goal at KBRG is to provide our clients with transparency and clarity on the variety of options as well as the corresponding advantages and disadvantages so you can make your decision with confidence. If you are ready to start the exciting transition into homeownership, KBRG is ready to help get you started!