Source: Bedtime Stories Part 1

Should you buy a house or rent one? Everyone faces this question at some point in their lives. Even a lifelong renter who loves living in an apartment probably doubts whether it would be better to buy a home or keep renting.

Let’s answer that question once and for all. Here are five reasons why owning a home is better than renting.

1. You build equity when you buy a home. 

This. This is the one. In fact, you can stop reading the other four reasons.

It's common knowledge that building equity is one of the leading reasons you want to own a home. It’s true; as you live in your house, its value increases more than what you owe. This happens because you pay the mortgage balance, and the property value increases.

You’re just throwing your money out of the window when you rent. Month after month, the money you give will not come back to you. Your landlord takes it all.

But when you buy a home, the money you put in monthly will be your future net worth. No matter where you are in the world, you have a home that you can go “home” to. 

In other words, when you rent, you’re just paying the landlord’s mortgage. Do you want to do that for life?

Might as well just put your money into your own equity and net worth, right? 

2. You save money in the long run. 

Yes. Owning will be a lot cheaper in the long run than renting. 

If you find a good deal on a home and get a 30-year mortgage, the payments can be surprisingly low compared to what you would pay to rent a similar home. Most of the time, your taxes and insurance will be paid all at once, so you won't notice the difference.

You might wonder why everyone doesn't buy houses. It’s all because of credit scores. Your credit has to be pretty good for a bank to lend you the amount of money you need to buy a house. Also, most traditional loans require a 20% down payment, and people don't always have that much cash lying around. 

That’s why they choose to rent for immediate living rather than saving money in the long run. You choose. 

3. Owning makes you feel stable.

Nothing beats this one. When you own your own home, you have more stability in your life. Most renters know that it's not a long-term deal and that they might have to move anytime. 

Your rental agreement says everything you need to know about your right to live in a place you rent. If your landlord sells your home to someone else or makes you move, you have no choice but to move. It’s like you’re at the mercy of your landlord rather than having peace of mind over your property. 

4. You have more control. 

There is no landlord. You own your home. 

Your lender has a lien on the deed to your home, but as long as you make your payments on time, you are the legal owner of your home and have full rights to it. Nobody can tell you what you can and can't do in your home; hence, you have more freedom to do what you want.

The rent also can't go up. Once you agree to the terms with your bank, the rate and payment won't change for the life of the loan. Taxes and insurance are the only things that can change.

It’s your home; you can pick your own colors and layout and do what you want with your home. 

5. Your home appreciates in value. 

One of the finest investments is, and always will be real estate. There is only so much space on Earth, and nobody can make more of it. Real estate appreciates steadily over time, and any decline in value is probably temporary. Simply by your family living and sleeping in your house, you let your home make money for you. This is something you can't do with renting.

Home values will likely rise once you pay down your loan, and most homes are worth more after 5-7 years. If you decide to sell, you can say you lived in a great house for less than renting while building equity and selling it for a profit. Win-win! 

Final Thoughts

We recommend buying a house. We see a house as a way to develop equity for the future. If you owned a house, you would lose less money to interest than if you rented for a lifetime.

Don’t pay for your landlord’s mortgage. Pay for your own home and build equity. 

Let’s make that happen. We at Loft Realty are helping many people achieve this goal of owning a Delaware home, and we can help you too. Give us a call or email, and we’re happy to talk to you.