One of the most important decisions that many adults make is if they want to continue renting an apartment or become a homeowner. Although there's plenty of convenience that comes with renting, home ownership can offer more financial benefits long-term. When deciding if you want to rent or own, there are a few benefits to consider with both options.
Ownership Offers More Control
Owning a home is ideal for those who want to have control over the design and customization of the property. From the paint color on the walls to the backsplash in your kitchen, you'll have more options on how you want to design your home. You won't have to worry about being regulated by a landlord who prohibits certain actions that you want to take, making it easier to create a space that suits your taste and lifestyle.
You'll also have the freedom to make improvements on the property to boost the home's value and earn more of a profit when you sell it in the future. Whether you decide to build a deck outside or add an extra room to the house, the changes that you may can pay off in future years.
Rentals Allow Quicker Move
Rental apartments are ideal for those who aren't ready to settle down and want the freedom to pack up and leave with limited notice. Whether you want to relocate for your job or decide to move in with a friend, you won't have to carry the burden of selling the property.
Apartment complexes typically require 30 days notice if you're not already locked into a lease. You can avoid feeling tied down if you're single or don't have children yet and are open to relocating in the future. Less obligation comes with apartment rentals, making it preferable for those who don't know where they'll want to live in the coming years.
Ownership Has Fixed Payments
One of the perks of owning your own home is that you can enjoy having fixed mortgage payments over the years without worrying about having to pay more. Mortage rates are locked in, making it easy to predict how much you'll continue to spend in the future. Rental apartment complexes are prone to increasing the rates each year due to demand and market conditions in the local area. Many renters are at risk of having to pay more, which can force some tenants to find somewhere else to live.
Rental prices can also be higher than mortgage payments for the average home, which can put a strain on your finances.
Rentals Have Less Maintenance
Those who own a home often contribute a significant amount of time to the upkeep that is required to maintain their property. From the landscaping to performing repairs around the house, it can cost time and money to keep the home in good condition.
Renters can enjoy having more time in their schedule on the weekends to perform recreational activities instead of having to invest in their home. Maintenance requests are easy to perform with the repairs fixed within several days. Those who have a busy schedule may prefer to rent an apartment to protect their time and money.
Owning a home can also become a financial burden if the air conditioner needs to be replaced, which can cost thousands of dollars. Renters don't have to worry about having money available for major repairs that are needed in the future.
Ownership Long Term Benefits
Many homeowners have peace of mind that they're making a financial investment in their future when purchasing a home because their payments will eventually end. Whether you get a 15 or 30 year mortgage, the house will eventually be paid in full, which can offer financial freedom. With rentals, there will always be a payment, which can make it difficult to increase your wealth at a later time.
Several different tax benefits are also available with homeownership, which can reduce what you owe to the IRS. You can itemize your deductions for costs that are associated with owning your property. You'll also be eligible for deducing the interest that is added to your mortgage. It's possible even to exclude the capital gain when selling the home. You can also get a tax break if you pay points to get a better interest rate on your mortgage. Although filing your taxes may be more complicated as a homeowner, you can reap the rewards by saving a large sum of money.
Renting or owning a home is a personal decision that each person will need to make when deciding where to live. Each option offers various benefits that can suit your specific lifestyle and may be ideal for your financial situation.