Why Homeownership Is Better than Renting

For more than two decades, Service 1st Mortgage has brokered first-time and refinanced mortgages for homeowners in more than a dozen states. At Service 1st Mortgage, loan officers review each client's circumstances to provide the best loan terms and home buying advice.

One question many first-time homebuyers struggle with is deciding when to stop renting and purchase a home. The answer largely depends on individual factors and the local real estate market.

Homeownership is best for people who feel stable in their careers and do not anticipate moving for at least three years. Further, since homes come with additional maintenance and renovation costs, potential buyers should have room in their budget to accommodate these expenses after making the mortgage payment.

In the long term, buying a house is almost always a better investment. In many real estate markets, average rents increase up to 5 percent every year. However, fixed-rate mortgages remain flat for decades. Over time, homeowners pay less for their housing than renters.

Buying a home also enables individuals to build wealth through equity. Renters cannot recoup their rent, while homeowners can tap into the value of their homes after they sell. And if the house increases in value, in some cases the gains are tax-free.