Why do many people say that buying a house is better than renting? The three answers with high votes are thought-provoking

Buying a house means a huge financial responsibility, not just a large monthly payment for 30 years… So why do people still prefer to be homeowners rather than renters? Here are a few key reasons to see if it can convince you and let you join the queue to buy a house 👇

1. Every payment increases my net worth

One of the biggest reasons people prefer to be a homeowner rather than a renter is that every payment builds equity in your home, which is something you can’t achieve by renting. “When I make a monthly payment to my lender, my principal balance goes down.”

While it is possible to become wealthy without buying a house, you need to be 100% certain that the investment will increase your net worth. While becoming a homeowner does the same, paying for a house is a form of forced saving that essentially requires you to acquire an asset worth hundreds of thousands or even millions of dollars.

Home ownership ultimately allows you to own a home, which is a big reason why homeowners have 40 times more net worth than renters.

2. Mortgage interest can be deducted from taxes

Owning my own home has another benefit: the government subsidizes my housing costs because it is itemized on my tax bill, so I am eligible to deduct up to $750,000 in mortgage interest.

Deductible interest is my taxable income minus the amount of interest paid. For example, if I am in the 22% tax bracket and I pay $1,000 in mortgage interest each year, I can save $220 because I don’t have to pay taxes on that $1,000. But you have to itemize your mortgage interest deductions, and many people don’t do that. They claim the standard deduction.

3. You can customize your house

The final benefit is not financial. “With my own house, I can paint it any color, renovate it to suit my needs and make it my dream home. If I were a tenant, doing these things would be meaningless and not even allowed.”

If you’re picky about your space, being able to design it the way you want it can be a great reason to buy a home, provided of course you have the financial resources to afford the home and the changes you want to make.