So you want to know why you should own a home and stop renting as quickly as possible? Well today I am going to give you some great reasons why owning a home benefits you more than renting one. We all know that owning a home might not be in the cards for some people right away but striving for the goal to own should be somewhere near the top of your priority list. Here are the reasons why you should make owning a priority…
<> Owning is an investment
You are investing in your future by purchasing a home and you are adding to your assets.
<> Builds Equity and Credit
Who doesn’t want the chance to build your equity along with your credit? Also its a safety net in case of extreme emergency. Building your credit creates more financial stability and eventual leads to better rates in the future. (Read our previous post on BUILDING YOUR CREDIT)
<> Smarter and cheaper than paying rent
In most cases, I say most because this isn’t always true but paying rent is more costly to you than buying. In other words you are just paying your landlords mortgage and raising his equity and credit when instead you could be paying your mortgage to raise your equity and credit while adding to your assets.
<> Nobody can tell you what to do!
Rental properties can and always usually do come with a hefty list of to do’s and not to do’s, such as adding people to the home. That would be something you would have to bring up with your landlord where as owning your own home you can pack it as full as your heart desires. Along with that stipulation there could be others such as painting or renovating or a big one, having pets.
<> Becoming more energy efficient
You can save money and receive tax breaks by making your home more energy efficient such as buying new windows, which you may be able to have written off by the end of the following year.
<> No one can kick you out!
There is many things that can happen that will have you moving out of your home within a specified amount of days without a lot of notice. Such as your landlord decides to sell the home or eviction for un foreseen circumstances, ultimately putting you in an unexpected situation you could’ve easily avoided by owning your own home.
<> Money savings that have to happen
We all know well if we don’t we can guess that owning your own home is expensive, it can be cheaper than renting in a lot of ways but there are also ways it can be more expensive such as repairs or maintenance to the home that is inevitable. These unknown factors require you to put money away for a rainy day or a rainy day that shows a leaky roof that needs repairs. Also the extra money put away for a rainy day can go into savings and you can build equity on that as well as your home.
<> Stable monthly payments
Mortgage payments and bills that come along with owning a home are generally very stable and can’t just move up and down because some has stated so, where as rental properties can go up in rent without much notice.
<> It is YOURS!
What is more satisfying than calling the house you live in YOUR home! You can have the finishings, paint colours, flooring, and pretty much anything else you can think of without anyone else making the decisions but you. For renters, these changes are generally not allowed or have a list of guidelines as what can be done and what can’t, also you will be putting money into fixing or renovating a property you will not financially benefit from in the future.
<> Your home is risk capital
You should view your new home as a quick way to get rich but that being said if the economy and the housing market start booming real estate prices will start to rise, so that home you initially paid $400,000 for could easily rise to $439,999in the right economy and you would come out ahead if you did decide to sell. Also though no to through a wrench in things but homes also do drop in value according to how the market is standing your home maybe worth less than you paid, but don’t let that scare your off your still building equity and paying down your mortgage so hold off on selling till the market rises again.
So there you have it, reasons why owning your own home is more beneficial in the short term and long term. Contact us today if you are thinking of giving up the rental life and finding that special home of your own!