While clearly in my line of business I am a proponent for purchasing a home or condo as opposed to renting it but the great thing now is that the research and numbers back up these claims. I have narrowed down the list to the top 3 reasons that purchasing makes better sense than renting.
#1.) Let’s get the biggest factor when it comes to renting versus buying out of the way and that is money. I think it is safe to assume that most people would guess that renting is a cheaper option than buying but in reality the opposite is true. In fact, Trulia’s chief economist, Jed Kolko, ran the numbers are determined that home ownership is 38% cheaper than renting. The numbers don’t lie! For those who feel that they can’t afford to be homeowners these statistics may cause a sudden change of mind.
#2.) Freedom is another wonderful reason to buy versus rent. What do I mean by freedom? Well for starters you will have freedom from a landlord, freedom from a signed upon lease or renters agreement, and freedom from monthly payment going to someone else’s gain. Plus when you own your own home you don’t have to check with someone else when you want to paint your bedroom green or you think the bathroom could use new fixtures.
#3.) The third most important reason that buying is a smarter decision than renting kind of goes hand in hand with the first two and that is future stability. When you are making mortgage payments you are essentially paying money to your future self instead of someone else. By putting money into your home investment you will eventually be able to turn around and sell your investment (hopefully for a profit) and therefore get your initial money back. Also when you are making improvements around your rental home or apartment you are essentially doing that for someone else where as when you make home improvements at a home you own you are doing that for yourself and in hopes that it will increase your overall property value.