1. You’ll Build Equity
With renting, building equity is not possible. With buying, however, each payment you make towards your loan increases the equity you have in your home. You can use that equity to put towards your next home, or save it for big life events like travel or retirement.
2. Tax Benefits
There are several tax benefits that homeowners may qualify for. Your biggest tax break is reflected in the house payment you make each month. For most homeowners, the bulk of that monthly payment goes toward interest and all of that interest is tax deductible.
3. Potential for Rental Income
Even if you don’t initially purchase your home with the plan of it being an investment property, you can still turn it into a source of income. This can partially or totally offset your mortgage, tax, and insurance payments on it.
The easiest way to do this is by renting out part or all of your property. You might rent out an extra bedroom to a friend, you could purchase a duplex or triplex and rent out the other units that you’re not living in, or you can list your home on Airbnb and rent out the space for short periods of time.
4. More Creative Freedom
As a homeowner, decorating and DIY projects are completely up to you. There are no landlords dictating which projects are and are not allowed. You can paint walls, add new bathroom fixtures, update your kitchen, finish your basement, or build a patio or deck to your heart’s content.
Overhauling your living environment to suit your ever-changing style is a fun, and even cathartic aspect of homeownership – and generally, it’s not available to renters.
5. Sense of Belonging and Community
Since homeowners tend to stay in their homes for longer than renters, they’re more likely to put down roots in their communities. This manifests in many ways. You might decide to join a local neighborhood association, sponsor block parties or volunteer at a nearby community center. As a renter, you might not do any of those things, especially if you know you may be moving in a year or two.