Renting vs Buying a House - Which is Better?

Renting vs buying a house - which is better? This is a question we hear a lot from perspective buyers. It's the American Dream to own a home and it's one of the single most important factors to increasing your net worth. Let's consider how owning a home may be the better option for you.  

Renting vs Buying 

In the local Metro Indianapolis housing market, home values are continuing to rise making buying a house most appealing. 

1. Pride of Homeownership

As we said, owning a home is the American Dream and what everyone strives for. If you get approved for a loan, now is the best time to make the transition.

2. Your Credit Score

Everybody knows how important credit scores are. It helps you buy most anything you want. Owning a home and paying your mortgage on time can increase your credit score.

3. Mortgage Interest Deductions

You can take some of your mortgage interest and deduct it from your taxes. If you're renting, you'll only receive the standard deduction.

4. Rising Rents

The country faces increasing monthly rent payments everywhere. Instead of paying rent, you can be investing in your own property.

Additional Benefits of Buying a House

There are many more benefits to homeownership. Whether you are a first time home buyer, move up buyer or an empty nester looking to downsize, owning a home may be the better option over renting, especially in Metro Indianapolis.  

When you buy rather than rent, you are building equity in an asset that will likely appreciate over time. Every time you make a payment, you are putting money in the equity "savings account." You can tap into this equity with a Home Equity Line of Credit to make improvements or pay down debt. 

Or, you can simply leave it and when you sell this home, you can use the equity built to purchase your next home. Equity is figured into your personal net worth - the more you have, the more net worth you have. 

How about considering predictable costs? When you rent, your monthly payments can increase over time due to rent hikes. When you buy a home with a fixed mortgage rate loan, your monthly payments remain the same for the life of the loan. This makes your housing costs much more predictable and easier to budget. 

Another benefit we haven't touched on but that is very important to many buyers is customization. 

When you own a home, you have the freedom to make any changes you want to the entire property!  Do you have or want pets? No problem for a homeowner! You have complete control over your surroundings and how you want it too look and feel.

Overall, if you are in the financial position to buy a house, it is typically much more advantageous the renting. Put the money in your own pocket, rather than a landlord's pocket...

Ready to See What You Qualify For?

Call the Evelo Team today and we can put you in touch with a reliable lender who can assist you with a pre-approval and a mortgage loan. It's the first step to homeownership!

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