3 Ways Renters Are Losing
All too often I'm asked about the costs vs. benefits of home ownership. Sure there are a lot of benefits to home ownership and there are benefits to renting. But here are three ways that renters are losing out every month.
1. Here in Charlotte, Rent is projected to increase by 5.3% in the next year. That is on top of the already increasing rents from years past. Homeowners have the ability to freeze their housing payments for years. Those that get a fixed rate mortgage have the ability to predict what their monthly housing payment will be for years to come! If the area you rent in suddenly gets popular, your rent goes up and you may be forced to move. If the area you own in, gets popular, your home is worth more and you get to stay there.
2. When you pay rent, you are paying someone else's mortgage payment. You have no ability to collect on the appreciation of the area in which you live. So you are essentially paying your landlord to increase their own wealth while you stay in the same situation, gaining nothing for your rent payment.
3. Home ownership has a lot of tax benefits. You can deduct the interest from your mortgage against your other taxes. These tax deductions can save you thousands!
Bonus: Home ownership comes with a sense of pride that renting just doesn't provide. Many renters don't get to modify their space or paint the walls of their homes like they would want to. With ownership comes the ability to customize and really make a home yours.