Homeownership is something that millions of people want to do but many don’t think they are able to make that dream come true. While many want to own a house, many more are debating the harsh realities of being a homeowner. While they debate being a homeowner and what that will mean to them financially, there are thousands more that are wondering if they are creating with by being perpetual renters.
Renting a house or apartment is something that millions of people do. Renting houses and apartments is something that happens for many reasons. Those that chose to rent may not ever want to own a house. Others may be forced to rent because of bad credit or because they are unable to pay the costs of closing. There is nothing wrong with renting but many don’t think they are building their wealth nor do they believe they are saving money by renting.
The Logic Behind the Questions
While renting is easy for millions to do, it’s something that doesn’t satisfy everyone. Renting isn’t always forever; it’s a choice that can be changed at any time by the renter. While it’s not the easiest choice to make, there may be some logic to it.
One of the things that leaves some renters questioning renting is the fact that they are paying someone else’s mortgage. The price that is paid the course of a year for rent is sometimes higher than paying a mortgage. While scary, it’s true for millions of renters. Instead of paying a lower amount for something that will eventually become theirs, people are paying rent to a landlord and not getting any of the benefits of owning the property.
Landlords or homeowners benefit from owning their property. One of the biggest benefits that homeowners have is the appreciation of their property. The value of homes normally increases over time and with the increase of their home’s value, their wealth increases.
Another benefit of owning a home are the tax credits and deductions. There are thousands of dollars available for millions of homeowners each year that will lower the amount of their tax liability. Homeowners with lowered tax liability may receive a refund of any overpayments in taxes during the year. While this benefit becomes obvious once a year, it can lead to a significant amount in savings.
Most renters enjoy the thought of freezing their housing costs. When a homebuyer has a fixed rate mortgage, their mortgage is the same amount for the life of the loan. Most renters are see their housing expenses increase every year. This is something that millions of people can’t afford and want to stop at all costs. It’s easier to budget money and build wealth when major expenses are fixed.
While there are benefits that come with renting, there are benefits to homeownership that most renters pay attention to. These benefits will help most renters accomplish goals they didn’t think were possible in such a short time.
Renting is fine for many but the logic behind owning a home is something that most consider. Homeownership doesn’t seem pointless when looked at from the right angle.