Let’s compare the costs and benefits of renting and owning.
If you're choosing between renting and owning, it's important to look past the monthly payment. Renting is sometimes (not always) cheaper by the month. Over time, though, the benefits of owning typically make a purchase a much better deal.
Our Renting vs Owning Calculator will show you how the costs and benefits might compare for your scenario.
When deciding keep in mind these key reasons why so many Americans continue to value homeownership. Let’s take a look at some financial benefits and non-financial benefits to owning a home.
The Financial Benefits of Owning a Home
Owning a home is a huge wealth-building tool and it provides financial stability over renting by locking in your monthly housing payments for the length of your home loans.
An article from Forbes explains: “Understanding the potential benefits of homeownership helps individuals see the value of owning property instead of renting. . . . household wealth among homeowners is a whopping 1,469% higher on average compared to renters, excluding home equity, making the allure of homeownership even more enticing.”
Over time, owning a home helps boost your net worth. It also sets future generations up for success as you pass that wealth down. After all, homeownership is the American dream.
The Non-Financial Benefits of Homeownership
Buying a home is not just a financial decision it’s a lifestyle decision. A few non-financial benefits include things like:
- Freedom and control over your living space
- Giving you a greater sense of pride and purpose
- Helps with community engagement
Buying a home is certainly a powerful decision and it’s of the most important and biggest things you’ll do in life. Having a place to call your own and build wealth is what the homeownership dream is all about.
If you have questions about the numbers from our Rent vs Own Calculator, have any general questions, or would like to get started on your purchase, please reach out. The team at Emerald Home Loans is happy to help!