9 Benefits of Buying a Home vs Renting

1. Its YOURS! You are free to get a dog, plant a garden, paint walls any color you want, change decor, and do most anything you like with your home.
2. Community. Makes you feel more connected to your neighborhood and community, gives you a sense of pride.
3. Forced savings. All those mortgage payment are slowly increasing the amount of equity (home value minus mortgage) you have in the home.
4. Fixed housing payment. You know that rent will increase over time, right? A normal, fixed rate mortgage locks in your monthly payment for 30 years.
5. Credit. If you pay your mortgage payment on time, owning a home substantially raises your credit score.
6. Stability. Allows you to feel a sense of stability because you can stay in your home as long as you want.
7. Tax write-offs. See our Lesson Tax advantages of Buying a House.
8. Increase in value. Yes, home values will go up again!  Over the past 50 years, home values have gone up an average of 5-6%. On a $150,000 home, that would mean over $75,000 in 10 years.
9. Tax free gain. At the current time, when you sell your home, you pay no tax on the appreciation since you bought it!

The benefits of buying a house outweigh the drawbacks for most people, but be sure to consider your purchase from a long term perspective of owning the home for at least 5 years.

The renting versus buying question is personal. Rushing into a home for the wrong reasons can erase many of the benefits.

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