Owning a home has always been better than renting. Of course there are a few basic reasons:
Your home is yours to do what you like, the inside of your home can be any color you want.
You can have pets without a deposit.
You are in control of when things are fixed, and not dependent on someone else.
There are also financial reasons to buying instead of renting!
Housing is a leveraged investment. Meaning that it will go up in value over time. For example, a 20% downpayment gives you a leverage of five. So every percentage point that your home goes up, gives you a 5% return on your equity. If you put down only 10% the leverage is 10.
You are paying for a house regardless it is yours or someone else’s. Some people will argue that when you pay rent you eliminate property tax and repairs. But keep in mind, that all that is figured into your rent, as well as a profit margin.
Homeownership is considered “forced savings”. You have your money invested in something that continues to increase. For example, it has been estimated that an average priced home bought this past January could build more than $42,000 over the next five years.
Owning helps against inflation. Rent prices tend to go up at the rate of or higher than inflation. But when the home is your own, the value will protect you against that.
Don’t forget the tax benefits associated with homeownership. Even if you can’t claim certain deductions anymore, homeowners can still benefit from a “lack of taxation of imputed rent and capital gains”.