Advantages of Buying Verses Renting 

To buy or not to buy – that is the question that many renters ask themselves.

There are many advantages of buying a home verses renting a home. Pride of ownership is one of the greatest advantages of a homeowner.  Not to mention financial tax benefits and community involvement.

Consider these points for the advantage of homeownership.  Your next home may be closer than you think.

Consider this list of the five advantages to buy a home.

Homeownership Pride

This is the number one reason to own a home. A homeowner can personalize and make a home their own. Choices in floors, paints, permanent fixtures, and landscaping can be a reflection of your personal tastes.  Families enjoy security and stability with a home investment.


Real Estate markets fluctuate, however in the long term real estate appreciates. Many homeowners choose a home investment because of the appreciation factor.

Tax Deductions/Capital Gains

Tax rates for homeowners provide a tax shelter.  Interest on your mortgage is deductible on tax returns. In the initial buying process, many fees can also be deducted on your tax returns. Property taxes paid should also be deductible.

When selling your home, capital gains are excluded from your return as long as you have lived in the home for two to five years.  For an individual, this exclusion is $250,000 and for a married couple, the exclusion is $500,000. This means you can move every 24 months and pocket the money free from taxes.

If the profit amount on selling a home is over the allowed limit, the profit is called a capital asset. The home must be owned for at least a year.  Tax treatment of a capital asset is favorable.


Monthly payments build a homeowner’s equity.  Each month part of your loan is for interest and part of the loan is for the principal of your mortgage.  Paying down the principal is what builds equity in a home.  The longer you own your home and pay down the principal loan, the higher your equity.

Equity Loans

After building home equity, a home equity loan is an option to pay off credit cards and other high interest loans.  The interest of a home equity loan is tax deductible. Many homeowners use a home equity loan to consolidate bills. These home equity loans can pay for college, medical expenses, home improvement and paying off high interest credit cards.

The advantages of homeownership are clear and make financial sense.  Instead of paying off your landlord’s mortgage each month, the investment could benefit you and your family. Use this information for consideration of purchasing your own home.