If you are currently renting, you probably already know what some of the downsides are. A lot of rental properties, for example, do not allow their renters to put nails in the wall. This can make a home very difficult to customize. You will always feel like you are living in someone else’s space, rather than your own. There are lots of reasons that buying a home is better than renting. Here are just a few of the biggest drawbacks of renting a home:
- Very little stability – Just about every rental contract has a caveat which allows the landlord to evict you, usually with very little notice. You could arrive home one day and discover that you are being evicted. You could get an email from your landlord, letting you know that they want to rent your apartment to someone else when your lease is up, forcing you to find somewhere else to live. This lack of stability can make living in a rental property very stressful.
- You’re not investing – When you rent a property, you are essentially throwing money into a black hole, which will never give you anything in return. Yes, you get a place to live, but when you own a home, you get a place to live and you are actually living in an investment that appreciates over time. When you buy a home, you are actually putting your money towards a goal—a goal that you cannot achieve when you just rent.
- No tax breaks – The government wants people to buy homes, so they offer a number of tax incentives to people who do just that. There are tax breaks that only people who own homes can take advantage of. These include deducting the cost of repairs and upgrades, as well as interest on mortgages from your taxes.
- No freedom – If you live in a rental property, you might occasionally want to repair or replace something yourself. Too bad, however. Most landlords do not want their tenants making any serious changes to the property. You certainly will not be allowed to build an extension, knock down a wall, or make any other kind of significant change to the space. That is something you can only do when you own your own home.