The Advantages of Buying a Home Versus Renting an Apartment

The Advantages of Buying a Home Versus Renting an Apartment
While renting is more flexible, buying a home has the bigger potential long-term payoff, with tax advantages and quality-of-life benefits. Comparing the costs of buying are more varied and complicated than for renting, so it’s important to look beyond just the numbers when making your next move. Imagine putting your aluminum garage door in Milwaukee under your name. It would be a total relief knowing that you have a property that is permanently yours.

You Put Down Roots When You Buy a Home
Although it’s better to rent if you won’t be staying long or if your plans are uncertain, that kind of flexibility comes with a price. It’s harder to feel established in a neighborhood if you aren’t a homeowner. Linda Lewis has been a real estate agent in Walnut Creek, California, for 29 years, and she says the main thrill of selling houses is watching people put down roots.
“When clients buy a house,” she says, “they settle in and create a community.” An added benefit, she says, is that you have the right to paint the bathroom or put in a rose garden without asking permission.

Home Ownership Is a Built-In Savings Account
As Dorothy repeats so often during her stay in Oz, there’s no place like home. It’s true even if you only have eyes for the bottom line. When you buy a home, you enroll in a forced savings plan. No matter how tight your budget may be, you find the money to make your monthly mortgage payment.
Month by month, you pay down the mortgage and increase your equity — the amount of money you can sell the house for less than what you still owe on it. Over a lifetime, home ownership helps you build wealth.

Buying a Home Has Big Tax Advantages
When you decide to buy a home, you can count on your uncle’s support — Uncle Sam, that is. The significant tax benefits of buying rather than renting may be reason enough to invest. Homeowners can deduct mortgage interest on their federal income taxes.
This is a hefty deduction for many people because interest payments are often the largest part of a mortgage payment in the early years of owning a home. You can also deduct some closing fees and your property taxes.

Paying a Fixed Mortgage Stabilizes Your Budget
As anyone who has rented a home knows, rent hikes are the norm and often out of your control. If you’re in an area without rent control, the landlord can raise the rent whenever he or she likes.
Even with rent control, there are exceptions and you can’t count on your rent remaining stable. If you buy a home and take out a fixed rate mortgage, your house payment stays the same for the life of the loan, whether it’s 15 or 30 years.

Buying a Home Costs Less than Renting Over Time
Buying is the cheaper alternative over the long term. While your mortgage payment may initially be more than you’d pay in rent, you’ll spend less over the life of the loan if you buy. Rents may rise over time, changing the equation. Also, given the tax benefits of home ownership, your true out-of-pocket costs from day one can be less than if you rent.
When you factor in the possibility that real estate values often go up over the years, home ownership looks even better. The cherry on top is that when your mortgage is paid off, you can stop making payments but you keep the house.

Why build your own?

One convenient thing with the existence of the World Wide Web is that, it is easier to see the choice existing in the market. It is easier now to outsource services needed for a new home that makes the aforementioned consideration nothing but a product of over thinking. One just needs to be critical in reviewing the available options and making comparisons to be able to pull out the best service available.

The advantage of building your own home is the leeway to mold it into something you really want. You are free to let yourself get wild over choosing the shape you want it to achieve, the size of the master bedroom, the number of windows, the height of the ceiling and the overall structure – whether you want it to be an open floor plan or not. You’d be able to install the right garage for you, whether contemporary or traditional-raised, in wood, steel, vinyl or glass, among others. You’d also have the choice of utilizing more durable, modern, and eco-friendly materials that are product of enhanced technology. In short, it will be the epitome of your dream home and not just a left-over of other people’s.

Aside from achieving the aesthetics, one advantage of a newly-built house is the feeling of starting a new.  You get the feeling of being accomplished with the evidence of your investment over your head. Plus, you need not worry that you’d be dealing with hidden flaws brought about by older houses.

Is a building a new house costly?

The common misconception in investing in a home is that building a new one generates a relatively higher cost. It may take a lot of effort to start from scratch but the overall cost depends on the contractor and the materials you’re going to choose for the construction.

To lessen the cost, choose the right builder with the right contacts. Some builders know where to outsource the cheapest materials without the compromised quality. They may even give you a lot of options to choose from. Being in an industry, they already have various suppliers depending on the needs of their clients. All you have to do is know your options and ask 2-3 experts on the materials before diving into the construction.

There is no assurance as well that choosing a ready-made house would not incur more cost. For instance, in choosing a house that is for sale in the market, you do not simply pick it, fix the papers and move in. There are several adjustments you need to do to make it liveable. There is a need for repairs that, depending on the damage, may cost you more. You cannot also be sure that it is well-maintained that in a couple of year or so, it won’t need overhauling that would be more expensive than just building yourself a new one.

Renovations of the existing structure in choosing an old home requires tearing down of previously installed walls to make way to a room better suited to your needs. Since this requires double the job, the expenditure in this type of project is doubled.

Calculating above mentioned expenses, choosing an old real estate might mean that you may be just exhausting the same amount of money as you would be when choosing to build your own, if not more. Whether it is as fulfilling would remain to be seen. But at the end of the day, there is no better feeling than the sense of pride and ownership you gain when looking at something that is all yours –concept and otherwise.