8 Reasons Why Smart People Would Rather Buy a House than Rent

8 Reasons Why Smart People Would Rather Buy a House than Rent

Now and then, it is common to hear the debate on buying vs. renting a house and which of the two makes more financial sense. You will most likely hear some people argue that renting a home only goes a long way to enriching your landlord. But, at the same time, there are financial dangers to purchasing a house when you are not ready.

While choosing whether to rent and buy, you need to consider your financial, professional, and social lives. You should only buy a property if you are confident that you will not move or want to sell for a very long time. Since purchasing your home may be one of the most significant financial decisions you ever make, you should carefully evaluate whether you are ready for it.

Advantages of Owning a House over Renting

Your property will build equity over time

Your home equity is the amount that you own after taking into account the debt. When you own your property, your investment builds over time. It is especially so if your house is in an attractive neighborhood or developing towns. Your home value may increase over time without having to do much.

You may also choose to invest in your home by making some updates that help increase your home value. Although you may have to spend on the improvements, you can improve your equity by choosing projects that have a higher return on investment.

You can maintain high equity by always ensuring that you address any maintenance issues your home may have. Additionally, your equity will increase as you clear your loan balance over time.

Potential rental income

If you own your house, you have the option to convert it into an investment property, where you can rent in for an additional source of income. You can use the amount you receive as rent to help with your mortgage, insurance, and tax.

You may opt to rent a room in your house or one unit in a duplex. You may also choose to move out to your second home completely and rent out your entire property. Either way, you have to ensure that you follow all your local rental property laws.

Freedom to customize your home

When you rent a house, you do not have the freedom to perform any home improvements. It is a right only meant for homeowners. You can choose to paint your home any color you want. If you are going to display pictures around the house, you can do so regardless of putting holes on your walls.

You do not have to wait for your landlord to repair any home damages or execute any changes that you may want. As a homeowner, you can be creative with whatever changes you want for your house, a benefit denied to renters.

Future investment

The smartest financial decision you can make in your early 20s is buying a home. When you rent a house, your landlord takes all your payments, and by the start of the next month, you may not have anything to show for it.

However, when you pay your mortgage, the mortgage balance decreases while there is an increase in your home equity, which creates padding for your retirement account. Therefore, it is smarter to invest in your own home rather than spending money on rent that will not provide you with value later on.

Additionally, your net worth can increase when you buy HDB properties in locations where the trend of the market continually increases.

More control over day to day housing costs

As a homeowner, you should ensure that your long term and short financials gear towards your own goals. As you pay your mortgage, the amount that you spend to live in your property is a constant that does not change over time.

About the author
Mrs. Hatland is a 30-something married, mom of 7 and the face behind the popular online publication, Motherhood Defined. Known as the Iowa Mom blogger by her local peers and “The Fairy Blogmother” worldwide. She has professional experience in working closely with clients on brand ambassadorships, client outreach services, content creation and creative social media advertising exposure.


  1. Owning a home is certainly an investment. Why pay money and have nothing to show for it!

  2. I wish we were in the position to buy a home but that just isn’t possible right now. So tired of renting!

  3. I’ve owned my house for over 30 years and the mortgage is paid off. Works well for me.

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