Owning vs. Renting – How homeowners come out on top

by Shea Homes Arizona on March 22, 2013

Have you ever wondered what the real differences are between renting and owning a home?  The average Americans’ motivations range from the financial perks, to a desire for a stable community, to the hope of creating a unique atmosphere for their family.

There are a lot of financial benefits from which all homeowners’ profit.  Some new homebuyers may worry about having to pay interest on a mortgage and property taxes when they buy a home, but did you know that both of these expenses are tax deductible?  In addition, as a renter, money paid to a landlord or property management company builds net worth for someone else and rent can go up at any time.  However, owning your home builds financial stability and longevity.  The money you pay toward a mortgage builds your net worth, and with a fixed rate mortgage, your payment and interest rate are guaranteed to stay the same. The differences between a homeowner’s and a renter’s net worth are huge! 

Average net worth of homeowners vs. renters

Annual income

Owners

Renters

$80,000 and up

$451,200

$87,400

$50,000 to $79,999

$194,610

$25,000

$30,000 to $49,999

$126,500

$10,600

$16,000 to $29,999

$112,600

$4,240

Under $16,000

$73,000

$500

 

 

 

 

 

 

 

 

Source: VIP Forum, Federal Reserve Board

In addition to raising their net worth, Shea Homeowners can help protect valuable energy resources with Shea Homes’ energy efficient construction, instead of potentially wasting lots of energy on the less efficient constructions and appliances in many apartments and older homes.  With expertly insulated exterior walls, dual-paned windows, energy efficient

appliances and water heaters, and energy saving air conditioning and heating systems, every Shea Home is built to use energy to its fullest potential.

Beyond all of the financial benefits, the great community atmosphere you’ll find in every Shea Homes neighborhood is a great reason to purchase a new home.  When the residents of a community own their homes, they are more likely to invest in the neighborhood relationally.  If you are looking for a stable community and a sense of belonging, then homeownership could be right for you.

Finally, homeowners enjoy the ability to customize their living space.  Did you ever want to paint a child’s bedroom or an accent wall in the kitchen? What about installing a barbeque, or designing your own landscaping?  Often times when you rent there are restrictions about what changes you can make to your home or apartment.  However, when you are the owner your only limit is your own imagination!  You can create your own dream living space.

What are the reasons you chose to buy a home instead of rent?  What do you love about owning your home?  We would love to hear from you.

To learn more, visit SheaHomes.com here for more owning versus renting information, or take a look at our Facebook page!

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