If you have ever wondered if it is better to buy a home or rent one, then you are surely not alone in this type of thoughts. Everyday millions of Americans and individuals around the world are faced with similar thoughts. From time immemorial, buying a home especially in America has be heralded as one of the most significant financial decisions anyone could make.

But do you really know the benefits of buying a home to renting one? Or, are you simply buying one because it is the American Dream? In this article, we at Blueporch.com will reveal some unique benefits of buying a house versus renting one in 2021.

Let’s get started!

• Your Home is Truly Yours

If you’ve rented a house in the past or currently renting a house, you know firsthand the restrictions that comes with it. When you rent, you are limited on the amount of designs or customizations you can do in your home. You are limited in your choice of color, structural improvements, and may even be prevented from having a pet in your home.

However, when you purchase a home, you have the liberty to do what you want with the space. You can change the colors, expand the kitchen space, and even change the flooring type. As a homeowner, your home is your canvas and your design limit know no bound.

• Your Home Appreciates Over Time

When you purchase a house, you are simply purchasing an asset that will likely appreciate over time. Purchasing a house doesn’t only serve the purpose of shelter, it is an opportunity to build wealth (equity) for your future generations.

For instance, if you purchase a home for $200,000 with a down payment of $50,000, you have 25% equity. As your home value appreciates, so does your overall equity (ownership) in the property. However, if you rent a house, you do not build any form of equity in the property and when you decide to move out, you will not receive a penny.

• Your Home Has Tax Benefits

In addition to the benefit of home appreciation, there are several tax advantages that comes with owning a house. For example, most home owners are allowed to write off their mortgage interest and property taxes up to a certain amount. These tax benefits can easily add up to a sizeable savings which may be reinvested into other investment vehicles.

• Fixed Mortgage Rate

When deciding on whether to buy or rent a house, here is an important thing to keep in mind. Unlike rent price where the price of rent is at the mercy of the landlord, your mortgage payment is stable for the period of the entire loan. Knowing that your mortgage payment and interest is fixed gives you the opportunity to have a strong financial budget.

• Your Home Can Offer Better Privacy

As any renter can tell you, there is nothing worse than having a neighbor that plays loud music and party all through the night. It can be highly frustrating and uncomfortable. Unfortunately, most rental property owners build their homes with poor building material that offers little to no sound barrier. Buying a home offers you ample space and privacy from noisy neighbors and prying eyes that can never be gotten as a renter.

• Generate Extra Income

If you live in an area with loads of tourist attractions, then buying a house is a great way to earn extra income through rents. Thanks to online platforms like Airbnb and Apartment.com, you can easily rent out the unoccupied rooms in your house to tourist for a fee. In fact, the money you realize from airbnbing your home can go towards your mortgage payments. This is one of the biggest benefits that come with buying a house against renting.

The Bottomline

While buying a house offers more benefits when compared to renting, you should evaluate your financial situation and housing needs before making such a move. Remember that buying a house is a serious financial investment and it is important that you hire the service of a local real estate professional to help you with the entire buying process.