Long-Term Impact of Owning vs. Renting
Renting a home may be more convenient and easier than buying or building your own home in terms of price and how much work is required. However, owning a home has more benefits in the long term than renting an apartment. In this article, we'll discuss the long term impact of both choices, and see home ownership tipping the scales more often than not.
Overall cost and savings
Renting a home may seem cheaper at first when compared to buying a home. However, in the long haul, rent will increase continuously and cost more than it would have if you had bought or built your home from scratch. Thus, owning a home may seem like an overwhelming investment at first, but it's worth it, if you're concerned about the overall cost. Also, owning a home is a great way to acquire property and build equity that will be a more profitable investment in the future.
Owning your home provides you and your family stability, as opposed to renting an apartment. When making long-term plans - say you want to raise a family and won't be looking to move in many decades - renting won't cut it. Owning your own home is ideal, as you won't have to worry about finding a new home when your lease is up or when the previous one is no longer conducive for you and your family. You can make changes and renovations to your own home anytime you like so that it’s comfortable for you and your family, whereas there are restrictions to making such changes to a rented home.
Home upgrades are an important consideration in the debate between renting an apartment and owning a home outright. In a rented apartment, your customizing options will be limited because you may not stay there for very long. As such, you'll be disinclined to make permanent, lasting changes to the space. In fact, you can only go as far as the landlord permits, which may be very little, or nothing at all. More significant remodelings are left to the realm of home ownership. As such, we see in the long-term that upgrades have more value in a home that you own, rather than a rented space.
Rented apartments will impact your earnings, as it's a steady commitment. If you want to earn a passive income in the form of rent, which can accrue considerably in the long term, then owning your home is the ideal option.With the latter, you can rent out a few rooms or a basement and earn a steady income over many years. On the other hand, landlords won't allow you to sublet a rented apartment, so you can't expect to earn.
There are many reasons why owning your home trumps renting one, although there are a number of considerations for the latter. If you're ready to own your dream home, I can help you achieve it with expert realtor services. Call or text me at 303-520-0070 to get started.