Reasons To Buy Rather Than Rent
There are many advantages and disadvantages of owning a home versus renting a home. As a homeowner, you can reasonably expect the value of your home to increase over time. This will increase the amount of equity accessible to you, and could reap major rewards to your financial position in the long-run.
On the other hand, if you were to rent a home during the same period of time, you are left with no equity and no property investment since you don’t own the home. However, you may have enjoyed lower living expenses and had the opportunity to save more money compared to if you owned the home.
There are many factors to take into consideration when deciding whether it will be beneficial to own or rent a home.
Fixed mortgage payment:
Unlike rent, your fixed mortgage payment can’t increase. A landlord may increase your rent on a whim once the contract expires but if you owned your home, you won’t have to worry about fluctuating payments to the bank.
If you have a spare room, renting it out would give you an alternative revenue stream. Alternatively, there are several home businesses you can indulge in which would provide you with additional income. In your own home, you are only limited by what regulations the government has imposed, which would be a lot less strict than what a landlord would.
Owning a home forces you to save.
Since homeowners have to pay their mortgage every month, they are routinely putting money into their own house. Then, if you eventually sell your home after the mortgage is paid off, there’s a good chance that “you’ll walk away with a payoff,” even after subtracting the costs of ownership.
No landlord can kick you out.
Renters can face an unexpected eviction notice if their landlord suddenly decides to sell the home, rent to someone else, or otherwise end the lease. If you can afford it, you should certainly consider buying instead of renting. A house is a good asset, especially if you have a family to look after.
Furthermore, you save money in the long run and with good maintenance, can increase the value of your home in the years to come.
Your real estate professional will assist you weigh out the pros and cons between your options and eventually help you come to the best decision.
Contact us for more information.