The question of whether to buy a home or to rent has become controversial in recent years. Many people have rejected the notion of home ownership in favor of a lifestyle with fewer long-term commitments. Even so, there are some important reasons why it can be a good idea to buy a home of your own, rather than paying rent to a landlord.
- You can have it your way
With ownership, unlike renting, you don’t need the approval of a landlord in order to make design changes, or keep pets. You can live in a place that conforms to your lifestyle, and you can expand it as your needs change. Owning your own home offers considerable additional personal freedom and privacy compared to renting.
- What you buy, you keep
When you buy a house, you’re getting more than just a place to live; it’s a place to call home, perhaps even for future generations to call home. It’s a long-term commitment with long-term benefits. As you pay down a mortgage, you build equity that functions much like a savings account, stored in the form of a physical asset. It’s solid, it’s real, and once it’s fully paid for, it’s yours to live in and enjoy for the rest of your life. Renters pass up this opportunity to build something bigger than themselves.
- Long-term stability
Land is a scarce commodity, and it’s an especially hard one to create more of. Because of that, its value generally increases over time. The housing markets have their ups and downs, but the numbers have historically gone up over the long term. This is a good thing for homeowners who have a fixed-rate mortgage. The value of your property increases, but your mortgage remains stable and predictable, a cost you can count on. It’s less peaceful for renters, who often see rates rise along with property values, and their landlord’s expenses.
- Financial power
Owning a home offers several financial benefits that renters don’t enjoy so easily. When you always make mortgage payments on time, you can build up a powerful credit history. You’ll be able to enjoy access to bigger and better loans on cars, appliances, and financial investments. Substantial mortgage interest and property tax deductions are available to homeowners, but not to renters. You can also consider the possibility of becoming a landlord yourself, and renting out rooms or the entire house for profit. As the owner, you’re ultimately responsible for maintenance either way, so why not let someone else pay you for it? This is one of the roads to true wealth: by acquiring an asset that generates passive income, you can begin to make yourself financially free.
Questions? I’d love to talk to you about how you can get pre-approved for a home that builds your wealth.