Blog Layout

Owning Versus Renting: Which is Better and Why?

Louisiana REALTORS® • June 21, 2024

When it comes to choosing where we live, there are a number of options. You can opt for the city, go out in the country, or choose somewhere in between. However, one of the biggest decisions you’ll have to make is whether to buy or rent. While renting has some benefits in terms of ease and access, there is a reason why homeownership is a big part of the American dream. Here are a few reasons why owning your home is better than renting it.


Owning a Home Costs Less than Renting Over Time

When you factor in the steady monthly note of your mortgage, the different tax advantages available to homeowners, and the consistent increase in the cost of rent; owning a home actually costs you less in the long run.


You Can Make Your Space Your Own

Owning your home gives you the opportunity to make any changes and renovations that you can imagine. Need extra space? Add on to your home. Need a more open floor plan? Take out that wall. Paint any color you’d like. Renting comes with very strict, if any, options for changing what currently exists. Even if you can make updates, you’ll be spending your money to improve someone else’s property.


Budgeting is Easier with a Fixed Rate Mortgage

When you rent you can be almost certain that each new lease will come with an increase in rent. However, when you buy your home with a fixed-rate mortgage your payment will remain the same for the life of the loan. Of course you can always pay more on a monthly basis further reducing the overall cost of home ownership.


Home Ownership Provides a Built-in Savings Account

Every month you pay your mortgage you are actually putting money into savings as an investment. As the balance of your mortgage decreases, the equity in your home increases with every payment. So while there may be no balance sheet, you are actually keeping more money for the future each month.


Owning a Home has Tax Advantages

When April rolls around and you’re doing your taxes, owning a home can make a big impact. The interest on your mortgage is tax deductible. For new homeowners this can be especially beneficial as a large part of each mortgage payment is the interest in the early years. Also, if you make energy-efficient improvements or other eligible upgrades, you can deduct them as well.


These are only a few of the things to keep in mind when you are deciding to purchase a home. The first decision you need to make is to entrust a REALTOR® to help you find your home.

MORE RESOURCES

Consumer Guide Update: Preparing for Homeownership

By Louisiana REALTORS® • February 19, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on preparing for homeownership. This guide covers what prospective buyers should consider as they kick off the home purchase process, including the importance of credit scores, mortgage pre-approval, down payments, budgeting, and educational resources. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Preparing for Homeownership Escrow and Earnest Money Pricing Your Home Preparing to Sell Your Home Fire Damage and Policy Coverage Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with potential clients to ensure they have the information they need to be successful in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover property taxes.

Consumer Guide Update: Escrow and Earnest Money

By Louisiana REALTORS® • February 14, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on escrow. This guide covers what homebuyers should know about earnest money deposits, including the general terms and use cases in real estate transactions. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Escrow and Earnest Money Pricing Your Home Preparing to Sell Your Home Fire Damage and Policy Coverage Flood Insurance Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover preparing prospective buyers for homeownership.

2026 LR Officer Elections, RVPs & NAR Director Applications

By Louisiana REALTORS® • February 12, 2025
The Louisiana REALTORS® Board of Directors will conduct several elections this Spring. Interested candidates that meet the qualification who are looking to serve at either the state association level or the national association level are encouraged to view the criteria and submit an application. An application that is not submitted on the appropriate form or not submitted pursuant to the instructions shall not be considered as submitted timely.
Show More
Share by: