You probably have heard a lot of people telling you to buy a house all the time. And there are a lot of good reasons why you should. Home ownership is actually much more than just an investment.
Need to justify your reason for wanting to own a house instead of renting? Here’s why:
Owning a house gives you a real improvement freedom. When you purchase your own home, you have more control over the redecorating and remodeling. There is no landlord to tell what you can and cannot do while decorating and improving your house.
Staying Long-Term Is A Smart Move
Experts largely agree that you shouldn’t own unless you plan on staying in the home for at least five years. When you rent, you are always at the mercy of your landlord. Once your lease contract comes to an end, they may decide to sell the property, rent it to someone else, or simply move into it themselves. There is no guaranteed stability outside the duration of your lease.
Certainty With No Surprises
With a fixed-rate mortgage, the interest rate is fixed from the time you sign the loan. This means that your monthly housing payments don’t change even if home prices rise substantially over time which makes it a popular choice for homeowners who prefer a stable, budget-friendly monthly payment. If you rent, your landlord can conceivably increase your rent each year or you can be a subject to rent control. Either way, there’s not much certainty.
Buying a home can be considered a forced saving. A portion of each mortgage payment you make go towards principal which builds equity in the property and increases your net worth. When it comes time to eventually sell your property, you will have money in your pocket from the purchase. When you rent, all the money you pay goes to the landlord and you end up deriving zero benefit from this.
Do you love more space for entertaining? A bigger kitchen? More rooms, maybe? This is one important reason to buy a home — the space. Bigger space will allow your family members to maintain their own spaces while sharing a single house. The extra bedrooms and bathrooms can also provide you with the room you need to comfortably accommodate guests in your home. Renting a home won’t give you this much space and are often pretty limited.
The privacy that home ownership can offer is priceless. If you’re renting in a large apartment complex, your privacy is sort of limited. Aside from noisy neighbors, as a renter you sometimes have to deal with meddling landlords who also have access to your private space.
Cool Outdoor Spot
Aside from those extra bedrooms, it’s also nice to have an outdoor space that you can call your own. Some people appreciates having a big, green field of sweaty weekend work, and you won’t get it when renting in an apartment or a condo. Do you have pets? Living in an apartment with a dog can be a hassle too, not to mention a bummer for the dog. And you may not even be able to have one, depending on the rules.
Owning a home winds you up with something of value that can be shared. If you think you’re ready to start your journey towards home ownership, don’t forget to check out our first-time buyer guide. We can likewise provide a FREE one-on-one counseling if that’s a better option for you.