Evaluating the Benefits of Homeownership

As the 3rd post of our chain blog, we shall aim to make a comparison between the advantages of homeownership. As the previous posts would have already given you a general idea of which direction this analysis will be going towards; it will also allow you to more critically analyze the comparisons made in this post. Who knows, maybe by the end you would be looking for a real estate agent, let us say somewhere in Pennsylvania PA. 

Advantages of Owning:

We have already made comparisons between the different costs of renting and buying a home, now we shall analyze the potential advantages or benefits of buying a home

1.       Tax Benefits

There are several tax benefits that are catered exclusively to homeowners. One of the most notable of these benefits are the federal tax deductions. By itemizing your federal income taxes, you are allowed to deduct your property taxes and the interest that you paid on the mortgage, ultimately reducing the overall income tax burden substantially. This is of extreme benefits to those in the higher tax bracket.

2.      Rental Income

Buying a home could also be viewed as an investment that can provide at least a constant rate of return. You could rent out the entire house or even a portion of it such as the basement or even a bedroom. This added income possesses the ability to even offset your mortgage

3.      Creative Freedom

When you buy a house, you are not bound by anyone to follow a certain décor and there is no one to levy restrictions on you about the dos and don’ts about your living place. This provides you with an added sense of comfort and safety and belonging. Even this this is an intangible benefit, but it is a significant one.

4.      A Community

Since home owning is a relatively long term commitment, you get to become a part of a community and it gives you a sense of belonging. You put down your roots, your children grow up, the house becomes a resort of sentiment itself and with a community of people to share those sentiments with, the value of the home becomes priceless.

Advantages of Renting:

1.      No Responsibility for Maintenance

Any problems with the home, for instance a pipe leakage, are to be dealt by the land lord. This saves you a bunch of money as well as time that would have been wasted on getting the repairs done.

2.      Ease of Relocation

Without the pressure of selling of a home to allow you to relocate reduces an immense level of stress. People who change jobs often or move a lot benefit from renting instead of buying, unless the mint it, in which case they can keep on adding to their housing inventory

3.      Credit Requirement is Lenient

As long as your credit report is not checkered by bankruptcies, you are likely to find a place that you can easily rent without much of a hassle. This is in comparison to mortgage lenders that have set a high credit standard for those looking to purchase a home.

4.      Price Fluctuations

As a renter, you need not worry about the fluctuations in the real estate market as they in no way effect your lease. That is a worry set in the back of the minds of every homeowner as they constantly feel the value of the house dropping.

For a follow up blog over the disadvantages of buying go to the following link Real Estate agent pa