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Top 10 Benefits of Owning vs. Renting


If owning your own home is high on your list of priorities, now might be the right time to take the plunge. After all, every rent payment represents hundreds or thousands of dollars that could be dedicated to buying your little piece of paradise. Here are ten benefits of owning your own home instead of renting from someone else.

1.      Pay Your Mortgage Instead of Your Landlord’s

When you rent, you are essentially paying a mortgage payment already -- for the property owner. In addition, you’ll generally pay a premium for renting to cover the costs of insurance, property taxes, property management, and other services. Instead, by choosing to own your home you can put that cash toward building equity and improving your net worth month after month.

2.      Control Your Own Space

Hate that paint color? Change it. Ugly backyard? Plant a garden. When you are a homeowner, you call the shots on the look and feel of your home. When you’re a renter, even the smallest nail holes may result in a damage report when you move out. And then a portion of your deposit is held back by the landlord.

3.      Build Personal and Generational Wealth

For most people, a home is the largest purchase they’ll make in their lifetime and the most significant they own. That means that you have access to the value of home a value that can increase over time with proper upkeep and standard market appreciation. In addition, the tax advantages of homeownership accrue to your heirs who can inherit your home at its stepped-up value, then choose to live there, sell it, or hold it as an investment property of their own.

4.      Enjoy More Home Options

When you’re looking for a rental, you may be limited in the types of property you can find and qualify for in your local market. By contrast, your home purchase may offer you far more flexibility, including a variety of architectural styles, home sizes, and features.

5.      Put Down Roots for Yourself and Your Family

For various reasons, you may be far more likely to move more frequently as a renter. This can be due to several factors, including poor property management, rent hikes, or a property owner’s decision to sell the home you’re renting. By contrast there’s more incentive to stay put and put down roots in your community as a buyer.

6.      Enjoy the Emotional Benefits of Ownership

Many studies link homeownership with greater satisfaction and happiness, and it’s easy to see why. The ability to control your environment and the pride that comes with tending to your  little piece of earth can profoundly affect your well being. In addition, there’s a sense of accomplishment that comes with homeownership since many people view it as a lifetime goal.

“New Survey Shows Generation Z Ambitious Yet Realistic About Homeownership.” Freddie Mac Consumer Research. 21 Nov 2019.

7.      Experience Greater Financial Stability

When you’re renting, every lease renewal may bring with it a higher rent amount for the following year. Switching from one rental to another may involve thousands of dollars in deposits, limiting your options still further. By contrast, a fixed-rate mortgage provides a consistent payment schedule that lasts throughout the life of your loan.

8.      Experience Greater Housing Security

If you’ve ever had a landlord notify you that your lease won’t be renewed or that they’ve decided to sell the property to a new owner, you know how scary it can be. When you own, however, you make the decisions about where you’ll live and for how long, including whether or not it’s time to upgrade to a larger space or relocate to a new area.

9.      Be Part of the Community

As a homeowner, you have a financial investment in your community, with more of a say in what happens there. You may a member of the homeowner or condo association or the co-op board. As a property taxpayer, you have a voice at the city council or county commission. In addition, you’re perceived as a permanent resident by your neighbors rather than a temporary guest of your landlord.

10.  Explore Optional Investment Income

If you’d like to create additional streams of income or get a little help paying the mortgage each month, you’ll be able to add investment potential to your home at will. Convert an unused basement or garage apartment into a rental property, add a tiny home or take in a renter to fill that spare room. Relocating for work? Hold onto your home and rent it out to offset your expenses.

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Rates as Low as % APR with flexible use of funds

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5


1Rates are updated daily at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on discount point, which equals percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.