Buying a Home Is a Better Option Than Renting a Home

Buying a Home is a Better Options than Renting a Home

Michelle Tanner

COM/156

January 10, 2011

Professor Jackie Smalls

Buying a Home is a Better Options than Renting a Home

The advantages of owning a home outweigh the advantages of renting a home in this economy, in terms of tax deductions and greater financial security.

If potential homebuyers assume they cannot afford to purchase a home, they may want to consider this: The homeownership rate is nearly 66.9% – indicating the homeownership is within reach for more Americans than ever before. In most cases it can be as affordable as renting, and in some regions of the United States, it can be more reasonable (U.S. Census Bureau News).

While buying a home is not right for everyone, the advantages are very evident for those individuals who may be ready to settle in an area that they love and want to become part of a community where they feel comfortable. One thing to consider is the amount of money spent on rent versus the amount of money spent on a mortgage. In some cases one will pay the same, or even less on a mortgage payment. In addition, a homeowner will be able to save on their federal taxes by deducting the interest paid on their mortgage (2010 U.S. Master Tax Guide, Paragraph 1047).

Any individual who may be considering purchasing a home will attain the knowledge that he or she has just made their first step in creating stability for their family. They may also be creating their first actual investment, which will give them a sense of pride and security. Homeowners start to build equity every time a monthly mortgage payment is fulfilled. One will start to see the benefits from this investment over a short period of time. Once a homeowner has built enough equity, they have the benefit and the piece mind of being able to borrowing against their home equity, if needed. There are many types of expenses for which your home equity can be used, such as: college for the...