Many people see owning a home as a rite of passage—an essential part of achieving the American Dream. However, buying a home comes with a lot of responsibility and considerations, along with some fantastic rewards. Whether it’s your first time or not, it’s important to understand both the benefits and risks of this major investment.
To help you decide if homeownership is right for you, the Loan Brothers from Mares Mortgage have put together a guide on why people often choose to own instead of rent.
Related: How to Rent Out Your House and Buy Another
If you stay in your home long-term, chances are you’ll see an increase in its value—giving you a strong return on investment. When you rent, your monthly payments go toward someone else’s investment. Owning your home lets you build equity and long-term financial growth.
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There’s no one-size-fits-all answer here. Renting has flexibility and fewer responsibilities, but owning gives you control and a chance to invest in your future.
Renting Pros:
Owning Pros:
Your home equity is the portion of the home you truly own. It increases every time you make a mortgage payment or add value through renovations. Paying down your mortgage is essentially saving every month.
Every mortgage payment chips away at your total loan. This not only helps you save long-term but also strengthens your credit history. Over time, you may be able to refinance and lower your monthly payments. Mares Mortgage can help you explore those options.
Maintaining or improving your home can increase its market value. From simple updates to major remodels, you’re growing your investment with each improvement.
Learn how to increase home value
As a homeowner, you may qualify for tax deductions on property taxes, mortgage interest, and even some closing costs. Especially in the early years when interest makes up the bulk of your payment, these deductions can be significant.
Read more on homeownership tax benefits
Paying your mortgage on time can help boost your credit score. A strong credit history can help with future loans, whether it's for a car, renovations, or other major expenses.
One of the biggest perks of owning a home is the freedom to do what you want—paint the walls, change the floors, adopt a pet, or remodel your kitchen. No landlord permission needed!
Need a bigger space for a growing family or a new home office? As a homeowner, you can build additions and truly customize your space.
Have a vision? Owning means you can renovate your home to match it. From DIY upgrades to full-scale remodels, you control the transformation.
Want bold walls or new floors? Go for it. You can decorate your space to match your personality without needing permission.
Related: Avoiding First-Time Home Buyer Mistakes
You can turn your backyard into anything you want—from a poolside retreat to a kid-friendly playground or even a serene fire pit area.
Does a pool add value to your home?
While owning has many advantages, it also comes with challenges:
Repairs can be expensive and come up unexpectedly. It's wise to have an emergency fund and insurance.
Unlike renting, you can’t just pick up and move. Selling your home can take time and money.
Owning means you’re responsible for everything, from fixing the HVAC to replacing the roof. These hidden costs can add up, so be prepared with insurance and savings.
Buying requires a down payment, closing costs, and other fees. These can be much higher than renting.
Housing markets can fluctuate. Your home’s value may not always rise.
A mortgage is likely your largest financial commitment. Make sure your budget can handle it.
Ask yourself:
If you answered yes to most of these, it might be time to look for your dream home.
Ready to explore homeownership? Mares Mortgage and the Loan Brothers are here to help you get started with personalized guidance and answers to your mortgage questions.
Related: Signs You’re Ready to Buy Your First House
