What are the advantages of buying a home?

Question

verses renting one

Answer 1

a) Less restrictions on use - no landlord to tell you not to paint your walls purple.
b) Appreciation - properties tend to go up in value
c) Equity - Part of your monthy payment goes to lower the balance you owe on your loan (sort of a forced savings plan)
d) Tax benefits - Property tax and mortgage interest is tax deductable
e) Credit worthiness - A mortgage with on-time payments is a great boost to your credit score/report

Answer 2

If you rent you have greater flexibility to move if you relocate or need more space.

If you rent you don't have to pay additional real estate taxes, water, sewer, or maybe even heat or hot water.

If something breaks, the landlord has to fix it.

Rent is NOT wasted money. It is paying for a service, like food. No one says that money paid for food is wasted.

Interest is tax deductible, but the way some people talk, you'd think it was free. The higher your income bracket, the less the interest reduces your taxes.

If you sell your house and need to buy a new one, the profit you made might be enough to buy another house exactly the same as the one you just sold, but not better, so what good is making a profit?

Answer 3

Many! Don't hesitate. If you plan on living in the property for a period of time (5 years or more), and you can afford to purchase, and the price is market value for your area, then buy. Look at it this way, if you rent, you end up with rent receipts. If you buy, you will probably end up with equity. Also, because you get a tax deduction for interest paid, it's like the government is paying part of your payment. Plus, it's home.

Answer 4

We see this question nearly every day. There is no doubt that if you are financially qualified, owning is always preferable to renting. As a renter, you pay someone else's mortgage and maintenance costs plus a profit. You don't make anything for yourself. As a home owner, you build equity (cash that sits around waiting for you to use it) for simply owning the property. Any improvements you make to the property increase your equity. As a renter, you pay rent and get no tax deductions. As an owner, you get to deduct the interest you pay on your loan, and any portion of the property you use exclusively for business (ie a home office). Finally, as a renter, you have to save money if you want to invest or buy property, toys or a college education for your kids. As an owner, you can use the equity you build by either refinancing or by using a line of credit and paying yourself back. So there's no question: Owning is always better (but not usually cheaper) than renting.

Answer 5

Equity, it may or may not help with taxes depending upon your financial situation and the cost of the house. It is your house so you can do what you want to do to it. The money you put into a rental house is just dumpted towards building someone else's equity or investment rather than having your own investment.
That and you can say you are a home owner.

Answer 6

-Tax deductions.

-The asset and equity of the house

- And most importantly the investment of the house and ability to earn a profit when sold.

Unlike renting which is bascially throwing money away. But in todays current market it may be better for some people.

Answer 7

reward: frequently extra fee-effective, and on occasion you may get an exceptionally great deal on an exceptionally superb homestead. negative aspects: on occasion the homestead replace into foreclosed on for a reason: it wasn't properly well worth the fee, so the owner stopped paying. it is likewise achievable that the guy booted out of it broken it in anger or disgust or in simple terms from loss of care. So be certain you have it right inspected and favored earlier you purchase, which of path you may do besides. there is likewise the straightforward probability that the former proprietor, particularly in the event that they have been evicted, could sense entitled to the homestead and ought to come around and do or say who is conscious what. it particularly is rather uncommon... even nevertheless it may take place.

Answer 8

If you buy it right.

You can make tens of thousands or hundreds of thousands when the value goes up.

You have tax deductions too.

Learn a bit about real estate investing. This is the best education I ever got and the most money I ever made is from Real Estate Investing.

http://www.forumforme.com/
Creative Real Estate Investing Forum

Answer 9

when you buy a home its not only a great investment but its yours vs renting an apartment you are just wasting the money because you have nothing ot show for it.. you dont get to keep it right??

if you can buy a home i would do it! You will not regret it!
found this site online and it had lots of reasons to buy a home
http://www.stevemarowitz.com/RealEstateTips/HomeBuying/Default.aspx/NF=1

hope it helps!

Answer 10

You earn equity if you buy the home yourself. Any updates you do to the home, helps the equity go up.
Our home, we bought it 3 years ago for $119,000. 2 months ago we had it appraised to do a refinance and it was valued at $160,000. $40,000 increase in a short time and we really didn't do a whole lot to it.


Good Luck!