It’s been a long time since we rented. We have owned our own home for the last 15 years. There are pros and cons to both owning and renting. Today’s post is a guest post written by Bryce Thomas. She brings up some good points. I hope you enjoy her article.
Every morning I wake up in my little basement apartment and think of how nice it would be if I lived somewhere with windows. Now, I guess we do have two little holes up near the ceiling that you could call windows. And sometimes, usually around one in the afternoon, the sun is actually high enough in the sky to shine directly into the room. For an hour or so. After that, it disappears, and we’re left in the semi-darkness of our little cave home.
Don’t get me wrong, there are a lot of great things about renting. I like not having to worry about mowing the lawn. I like not having to fix serious problems in the house, I like knowing I can leave and move somewhere new at the end of my year-long lease. But there are quite a few downsides, not least of which is the quality of apartments I can find at a decent price. In this case, one with no real windows.
I also dislike not being able to make real changes to my surroundings without the approval of my landlord. And I would love to have a dog. Something that most landlords won’t even consider at an extra cost.
As I’m still working toward grad school, buying a home is out of the question. I have to be able to move wherever I get accepted, and living in a house for less than five years is basically losing money. But it’s not too early for me to figure out what I need to know about owning a house, and when it might be a good time for me to consider taking the plunge.
With these questions in mind, I contacted a local mortgage company, Axiom Financial, to ask about some of the benefits of owning vs. renting. The folks there were really helpful, and here are some of the main points I gained from the conversation:
Owning is Better in the Long Run
I wasn’t too surprised by this tip. It makes sense to me. When I pay rent, I never expect to see that money again. So while it might be less expensive for me monthly to rent, in the long run, I lose that money. When you own a house, you’re contributing to your equity. Eventually, you’ll see a return on that money, if you ever decide to sell your house. There are also several tax benefits that come from owning a home that you don’t get when renting.