Benefits of Owning a Home vs. Renting

Whether you are currently renting or thinking about buying a home in the future, you are probably interested in how homeownership can benefit you. At Clayton, we truly believe homeownership makes people’s lives better, and we want to share some top benefits of owning your home.

More Privacy

One of everyone’s least favorite things about living in an apartment is sharing space with neighbors. We all have or have heard the horror stories of being woken up by the person in the unit above you deciding to vacuum or watch a loud movie at 3 a.m. Having to park on the other side of your complex because all the parking spots near your apartment are taken. Landlords coming in for inspections when you are still in your pajamas.

There are a lot of reasons to want a home of your own, and one of the most popular is privacy. Good fences make good neighbors, as the saying goes, as well as not sharing a wall. Being able to live on your own schedule without stressing over making or hearing too much noise means you can enjoy your quiet mornings if you are an early bird or putter around the kitchen if you’re a night owl. You won’t worry as much about your dog barking while you are at work or if your newborn who you finally got to sleep is going to be startled awake because someone else’s TV is too loud.

Less Restrictions

Speaking of dogs, many people who rent need permission to have pets in their apartments and usually must pay a fee. The type, breed and size of the pet may also be restricted by the landlord’s rules. Owning a home not only means more options for pets but also usually gives you more room and backyard space so they have room to play.

You also gain a lot more social freedom. You can have more friends over for barbecues and game days, and you are also more likely to have room for them to park. You can even invite long-term guests much more easily without needing to run it by anyone.

Customization

Buying a home means you can make it yours. From renovations and appliance updates to painting the walls and hanging up shelves, you can customize your home to be how you want. And that applies to the outside of your home too. Plant flowerbeds or gardens to jazz up your landscape, add patio furniture to your porch for an outdoor living space or install a firepit in your backyard for marshmallow roasting. You’ll enjoy the freedom of owning your home and can paint every room a different color if you want.

Stability

Owning a home offers also greater stability both financially and socially. With fixed mortgage payments, budgeting for housing each month becomes easier. Compare that to the unpredictability and stress of rising rent costs each year and how landlords can choose not to renew your lease. Homeowners are also less likely to move than renters, on average staying in their homes for over 13 years, so you can enjoy the stability of living in the same area for longer.

Community Ties

The National Association of Realtors reports several researchers have found “that homeowners tend to be more involved in their communities than renters.”

Because homeowners stay in neighborhoods and communities for longer, they develop deeper and stronger relationships with local businesses and civic groups like schools and governments. Stable, affordable housing helps prevent the need for frequent moving, which could have a negative effect on children. According to the National Housing Conference , frequent “residential moves often lead to interruptions in instruction, excessive absenteeism, chaotic environments not conducive to studying, stress, disruptions of peer networks (for older children), and interference with the development of close, personal relationships (for younger children).”

Financial Health

Finally, there are several ways a home can be a good investment financially.

• Unlike with renting, every payment you make is toward owning your home in full. When you make your final payment, you have a house, giving you a return on your investment.
• Having a fixed house payment can free up more room in your budget for spending on other needs.
• Making payments over a longer period of time can also help you build equity, giving you more borrowing power for the future.
• Consistently paying your mortgage can strengthen your credit score and build credit history. And don’t forget to look into the tax benefits you may be eligible for as a homeowner.
• Depending on the housing market and your location, your home can appreciate over time.

Now that you know the benefits of owning a home, you may be asking, “How do I begin the home buying process?” Check out the Home Investment category on our Studio blog to get the answers to your questions, from loan types and budgeting tips to choosing a lender and finding land.