Choosing to buying or renting home is important decision. Lots of people think that buying home is better option because it gives sense of security and stability than renting.

Renting do not have chances to build long term investment in their property. Property value is appreciating for period of long term. On the other hand, buying home is good chances of creating wealth. This is cheap option than renting home. Whatever monthly installment you are paying now, for long run that property belongs to you. You can live in mortgage free property. You have your own right to live how you want. You should follow your landlord rules and regulation if you renting home, but owning home you are the boss. Even you are buying home with down payment, you are creating more capital, you can pay your renting amount to installment so that your amount also creates wealth. If you rent your home to tenant than you can get passive income regularly, which is very powerful sources of revenue. Such income helps you at your retirement.

These are the reason why buying home is better than renting.

1 Buying home is cheaper in long run.

  In a long run buying home is cheaper than renting home.  Once you pay your rent it will not come back with you but if you pay installment than that home will be your own property for a long run.  Initially down payment is bit big amount but it creates wealth also. Property price is increasing every year so in long run your home value is far more than your down payment and installment.

2 It build wealth.

Buying an own home build your wealth, to paying rent it will build your landlord’s wealth. Property price increase over a period of time, it creates your wealth more consistently.

3 Leverage

 You can get leverage from owning homes. You can get loan against your home from bank and financial institution. That amount you can use to buy more properties so that your net worth will increase. Leverage is very powerful tools to increase wealth.

4 Stability

Buying home gives you a stability, once you buy home there will be attachment with that property, your family member can feel secure, your children can call their own. You have your neighbor, your society once buying your home.

5 Freedom

 You can feel comparatively more freedom in your own home. You can live in your own style. in renting home, you need to follow the certain rules of home owner. You cannot make change inside the home.

6 Passive income

 Buying home is one of the major sources of passive income. If you rent it to tenant, you can get regular income. Specially for financial freedom, rent is best sources.

7 Investment portfolio

Buying home is one of the better portfolio for investment. Property and other assets class have opposite relation. If the economy slowdown or recession, property value will not decrease much. People needs home to live at any economic condition either boom or recession. So buying home is good decision.

8 Easy financing

 Now, it is very easy to financing home by financial institutions. You need not to collect money till your retirement to buy home, you can buy home at the age of 20 and become proud owner of your home. You can choose home loan option and get financing from them.

Buying home or renting home totally depend upon individual’s choice, some people prefer to buy some people prefer to rent. Both option have pro and cons. For a long term period of time buying home is better option because it helps to creates wealth.