8 Reasons for owning your home vs. renting

 Grant Trevithick Carrollton Real Estate Investor here with another pro tip. Today we are discussing some of the pros of buying a home using owner finance versus renting.

There are several reasons why buying a home using owner financing might be a better option than renting here are just a few of them:

  1. Building equity: When you rent, you are paying someone else's mortgage, which means you are not building any equity in the property. When you buy a home using owner financing, you are making payments towards the principal of the loan, which means you are building equity in the property.

  2. Potential for appreciation: If the value of the property increases over time, you can benefit from the appreciation when you sell the home. This is not possible when you are renting.

  3. No shared walls. Neighbors can become your best friends over time, but it's more likely when you don't need to listen to their music, fights or snoring at night which is common when renting. They say you can choose your friends but you can't choose your relatives...you can't choose your next door neighbor in an apartment either.

  4. Stability: Renting can be unpredictable because landlords can raise the rent or sell the property, forcing you to move. Owning a home provides more stability because you have more control over your living situation.

  5. Creating a personal space. Although there are some apartments where you have the latitude to add personal touches (paint, wallpaper, etc) most are yours on a "don't touch" basis. Add to this the fact that any change you do make have a short lifespan due your eventual move (If you're a lifer regarding the apartment ignore this one) and it's unlikely you will want to make any type of changes, which means you simply live with the vanilla box the complex has decided on for you.

  6. Tax benefits: Owning a home often comes with tax benefits, such as being able to deduct mortgage interest and property taxes from your income. These benefits are not available when you are renting.

  7. Community: Like it or not most people that live in apartments are not there for the long haul. This has the effect of stifling many peoples outreach to the community. It's harder to develop lasting relationships when neither party knows how long you'll be living next door.

  8. Personal satisfaction: Many people find a sense of pride and accomplishment in owning their own home.

Of course, it's important to carefully consider the costs and risks of homeownership, as well as your own financial situation and goals, before making a decision. It may be helpful to speak with a financial advisor or real estate professional to help you determine if buying a home using owner financing is the right choice for you.

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