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How is owning better than renting?

I rent and it's nice to not worry about fixing anything. But people keep telling me I should own a place. How is owning better than renting?
Asked By Chase | Boulder, CO | 429 views | Renting | 1 year ago
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Semi-Pro
47 Answers
Lynne Pruell

Realty 100 LLC

(16)

When deciding if owning is better than renting will depend on your financial situation. Owning a real estate property involves upfront investment which will include but not limited to, down payment, insurance, closing costs, property tax and the maitenance and upkeep of the property. Rent generally will requirements - good credit score, stable work history, 1st month payment, 1 month security deposit, if applicable pet deposit which is generally non refundable and monthly rental payments vs a mortgage payment. Renting does not give you tax write off as to owning. Depending on where you live, rental prices have gone up substantially over the last few years.
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Rising Star
19 Answers
Tammi Nicholas

Epic Real Estate

(1)

Owning is better in the long term. It is an investment in your own wealth. Every month part of your payment goes toward the principle of the loan. This means you have more and more equity as time goes on. When the loan matures at 15, 20 or 30 years, you will own your home free of mortgage.

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Novice
6 Answers
Gitta Urbainczyk PA

Gitta Sells & Associates Keller Wiliams Heritage Realty

(148)

It depends on your situation. Rents go up, whereas a mortgage payment is constant over the years and you build equity. The main question is, what is going on in your life today, buying might nor be in your best interest.
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Novice
4 Answers
Stephanie Wyatt

LIV Sotheby's International

(5)

It really depends? If you like building your own wealth then Yes owning a home is a better financial choice. For example, lets say you purchased a home in 2020 for $500,000. Your monthly payment would be approximately $3400. Today your home would be valued at close to $650,000. Where else can you put your money and earn this much! If you had to move out of state today there is approximately $150,000 in equity if you owned a home. If you rented the same home in 2020 and had to move out of state you would own exactly $0 in equity. Renting makes sense in some instances. It bridges a gap. But people that are truly financially well off own property. You never have to worry about the cost of your mortgage going up. Rent has increased approximately 15% in the metro area over the last 4 years. So...it really depends on your financial situation but owning always produces more equity in your pocket.
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Novice
3 Answers
Lawrence Hemsley

Realty Point

(31)

Owning a home is a great way to accumulate wealth over time. Home appreciation is REAL. For example, in 2016, I worked with a first time home buyer who was in his late 50s but he had never purchased a home in his life. During the whole process he was worried about the initial cost of the home and a future dip in home prices. I explained to him several times that as long as he ls buying for himself to live in for the long term there should be nothing to worry about. He ended up purchasing a home for $326,000. Today we are in 2023, seven years later and he still lives in the same home that is now worth $526,000. His equity in that house is well over 40% due to appreciation and monthly payments made on his mortgage. Paying down the mortgage was like putting money in a savings account every month. If you ask me, owning your own home to live in is the single best investment a person can make, even in your late 50s.
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Novice
2 Answers
Katherina Ramirez

Weichert Realtors Daher Companies

Owning could be better in the long term cost wise since you are building equity in your home as you pay it. Oppose to renting where the $24K a year ( just estimating off of someone paying $2,000 dollars in rent) goes to the Landlord instead on in you pockets essentially. But for those that do not want to deal with repairs, up-keeping, and a mortgage then renting is best.

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