Will I save more money if I am a homeowner instead of a renter?

Would I save money if I owned my home? I am in my mid-30s and most of my friends have become homeowners. They say it is about saving money and having more money in the future. I am not sure if I want to be a homeowner; it seems like a lot of work.

Answer
“Being a homeowner has been a part of the American dream since the mid-1940s, but the philosophy behind this has changed in the past few years.
Instead of thinking of homeownership as a primary goal of adulthood and success, ask yourself if owning a home fits into how you want to live your life.
Here are some pros and cons for you to think about.
Renting Pros:
  • Flexibility–You can move when you want to.
  • Predictability–Your rent and renters insurance payment will stay the same every month until it is time for the renewal.
  • Maintenance–If something breaks, it is not your problem or your expense. Just call the landlord.
  • More free time–Without lawn maintenance and upkeep to worry about, your weekends are your own.
Renting Cons:
  • If your landlord sells the home or raises the rent beyond your means, you will have to move.
  • You don’t get to take advantage of the mortgage tax credit.
  • If you are unhappy with your space, making changes or renovations may be discouraged or forbidden altogether.
Homeowning Pros:
  • Freedom to make changes to your home whenever you like.
  • There is a possibility to build equity for your future.
  • Pride of ownership and belong to a community.
  • Ability to have the mortgage tax deduction.
Homeowning Cons:
  • There is no guarantee that your home will increase in value over time. There is just as much a chance that it will stay the same or decrease.
  • Depending on your tax bracket and how you file your taxes, the tax savings may be insignificant.
  • There will always be home projects and upkeep to do.
  • Unexpected expenses like a new roof and water heater can happen at any time.
  • Added expenses like homeowners insurance, property taxes, pest control, etc can add up.
As you can see, there are many reasons to become a homeowner and many reasons to stay a renter. In the end, you will always have to pay for a place to live, whether it is rent, mortgage, or taxes and upkeep. Just do what feels right for you and how you want to live your life.
Whether you rent or own, Jerry can you find the lowest rates on car and home/renters insurance from the top companies in under a minute.”
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Shannon Martin
Answered on Jul 26, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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