Throughout history the “American Dream” portrays homeownership as the ultimate goal and this not without reason. There are many reasons why this aspect of the “American Dream” has stood the test of time, through depressions, recessions and real estate booms and busts. The advantages of homeownership far exceed renting and the disadvantages of renting only enforce the reason for the “American Dream” of homeownership.
Advantages of Homeownership
- TAX ADVANTAGES
Tax benefits include mortgage interest and property tax deductions
- SAFETY NET
The homeowner controls occupancy, decides when and if they have to sell or move
- FORCED SAVINGS
The equity that is accumulated throughout the years is like a long term savings plan waiting for you to cash it out
Appreciation in real estate value is the general norm, homeowners can benefit for increasing values of real estate
The homeowner has creative control, the liberty to modify, remodel or change without needing a permission.
Most homeowners enter into a 30 year loan with set, guaranteed payments and never have to fear the risk of inflation increasing their housing expense
A sense of pride in a home can only come from HOMEOWNERSHIP!
Disadvantages of Leasing/Renting
Unpredictable living cost, with rising rent increases
- NO EQUITY
Paying a monthly rent gives no future savings to cash out on, instead the monthly payment is essentially given to the landlord for a future cash out
- NO INCENTIVES
Renting offers no tax breaks or benefits
- RULES & REGULATIONS
The landlord owns the property therefore their authorization and approval must be received for things as simple as hanging a picture to having weekend guest, plus rental properties are regulated with by-laws that may not be very appealing
- PERSONAL FREEDOM
Without owning a property modifying or altering to give a sense of personal style is not an option, creative freedom will be left to things such as furniture and pillows
- LIVING ENVIRONMENT
In all housing problems can a rise—in a rental a remedy for the issue on hand are at the mercy of the landlord, their schedule and often times the landlords remedy is the cheapest possible, not necessary the one you would have picked
Renting a home is on another’s terms and conditions, at the end of the lease agreement a tenant could be made to move leaving, them in a pinch to Find a home
Dealing with a landlord may not always be pleasant, some landlords are irresponsible and incompetent.