Buying Vs Renting

Housing habits are not what they used to be. For this generation, it is far more common to rent a home than to buy one. According to Statista, the number of renters in the U.S. has drastically increased over the past 40 years, spiking from just 25.7 million renters in 1975 to 43 million in 2020.

Despite its growth in popularity, renting has serious drawbacks and actually depletes your long-term wealth. In contrast, homeownership allows for consistency in cost and enables you to build wealth. Adults who have a steady income and are already paying rent should move towards homeownership as soon as possible. Here are six reasons why.

Homeownership builds wealth. When you rent a home, you are building wealth for your landlord or rental complex. Now, imagine if every month, your rent payment was investing in your own property and your own future! Homeownership allows you to do that. With every mortgage payment you make, you build equity.

Equity is essentially the difference between the value of your home and how much you owe on your mortgage. You continue to build equity as your home appreciates in value. This means that, eventually, you should be able to sell your property for a profit.

If you can pay rent, you can pay for a mortgage. Many people find the concept of a mortgage to be daunting and avoid homeownership because of it. If you are already paying a significant amount in rent every month, you could just as easily pay a mortgage instead. Mortgage payments are generally in the same ballpark as rental payments – and they don’t increase in cost every year. Additionally, mortgage payments become an investment in your future, while rental payments just eat into your savings. It’s a worthwhile trade-off that most renters can handle.

Homeownership means consistent monthly costs. Rent is always going up. Your payment could increase as much as 7 to 10% annually and double every 5 to 10 years. According to Zillow, the average rent increase in 2019 was $196. That is a lot of money!

When you become a homeowner, you never have to worry about a landlord hiking up your cost of living. Your mortgage payment becomes a steady bill over a long period of time, just like a car payment. There will be added home maintenance costs, but these can be minimized if you check for everything when buying the property and proactively manage your home.

Homeownership allows you to build wealth while you’re sleeping. Property and equity are valuable assets that can be traded or used to generate wealth. If you need to move, you can rent your home to make a profit, or sell it with low transaction fees and take advantage of your home’s appreciation value. You simply can’t do this with a rental property.

The government rewards the homeowner, not the renter. Owning a home may actually reduce your annual tax burden. You may be able to take advantage of mortgage interest and property tax deductions, home office expenses, renewable energy tax credits, and more! On top of all this, you may be able to sell your home and pocket the profits without paying capital gains taxes. It pays off to own a home! (Note: Home.LLC is not a tax advisor. Consult a tax professional to answer any questions you may have regarding your particular tax situation.)

Homeownership gives you the freedom to build your future your way. While there are certainly costs involved in homeownership, there are also costs involved in renting. In fact, the long-term cost of renting is significantly higher. Making the choice to become a homeowner means that you are no longer building your landlord’s future – you’re building your own.

There is a deep sense of pride that comes with purchasing a piece of land to call your own and gaining control over your future. You no longer have to worry about pet restrictions, noisy neighbors on the other side of the wall, or endless rent increases.

A home comes with many investment benefits, but it also comes with risks. Because of this, homeownership is not an investment for everyone. However, you could partner with us here at Home.LLC to help you through this process.


You can buy your home with us for just a 5% down payment! By doing so, you will receive an investment from us to reach your 20% total down payment. This investment is not a grant or a loan – there is no debt or interest to pay back. With our investment, you will be borrowing only 80% of the cost of your home, not 90% or more. You will avoid private mortgage insurance (PMI) and borrow close to the prime interest rate. All of this will enable you to save thousands of dollars and buy your home with confidence!
However you choose to buy your home, the choice is clear. Homeownership is a better deal in the long term! It will allow you to build wealth, gain freedom, and take control of your future.

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