Renting is easy.
Your landlord covers your maintenance, and you don’t have to worry about pesky association fees. However, renting a home is expensive. You’re depriving yourself of equity. For some people, the advantages are worth it. They’re willing to pay for their convenience.
For others, paying rent to someone else is a financial trap that they’d like to avoid.
The government promotes homeownership. Homeowners are eligible for a slew of potential benefits. In addition to potential financial gains, owning your home could increase your quality of life in intangible ways.
In your senior years, you can set up a reverse mortgage and provide yourself with extra cash if you’re a homeowner. Essentially, you take out a loan against the equity of your home. If you continue to live there for the rest of your life, you won’t have to make payments on the loan.
After you pass away your house will be sold to cover the debt or your heirs can cover the costs if they’d like to own the property themselves.
Pros & cons answered by Arlo writes that “you can live in your home for the rest of your lives and never make another monthly mortgage payment.”
There are a lot of reasons to buy a house and many of them aren’t related to finances. After all, your home is your sacred spot in the world, the place where you don’t have to be anything but yourself.
Does buying a home make sense for your circumstances? If it does, it would be insane to not at least consider the idea. You may love the freedom associated with being a renter but that doesn’t mean you have to ignore the benefits of being a homeowner.
1. You’re in control
You can paint the living room walls black and put up zebra-print wallpaper in the kitchen. There’s no landlord to tell you that you’re doing something wrong. You can finally repaint that room you have always wanted to. Here’s few useful tips to paint tall walls above the stairs.
You might still have to deal with a homeowner’s association but they’re far less invasive. The association only cares about what can be seen from the street. You’re free to indulge your desire for quirky design touches in your home’s interior.
A landlord can kick you out the moment that your lease ends, whether you’ve been a good tenant or not. They can rent your unit to someone else even if you beg them not to.
When you buy a house, it’s yours. As long as you pay your mortgage, you can remain for as long as you want.
2. You’re Forced to Save Money
A portion of your monthly mortgage payment is used to pay down the loan. It’s a required fee that keeps the homeowner investing in their own property.
By contrast, your landlord keeps 100 percent of your rent money.
3. You’re Protected Against Inflation
If you have a fixed-rate mortgage, your payments will remain the same despite the antics of the market. Not only does this provide a hedge against inflation, it helps give you financial stability. It’s very useful to know that a cost won’t be raised in the future.
Renters don’t have that stability. Your landlord can raise your rent every lease term if they see fit. It’s harder to make long-term financial plans if you’re not sure what your housing costs will be.
4. You Receive Tax Benefits
You can deduct your property taxes and your mortgage interest when you file your tax return. The savings can be significant. Most of your mortgage payments go toward interest.
5. It’s Yours
Pride of ownership is a strong feeling. The financial benefits of homeownership are a great motivation to buy a home but they’re not the only reasons spurring people on.
People want to own something. They want something that belongs to them and them alone.
6. You Can Pass It Along
Eventually, your home may belong to children. You can decide to leave it to them, or another person that you care about after you die. It’s a way to protect your loved ones.
Buying your first home can seem daunting, especially if you don’t know much about real estate. However, there’s nothing to be afraid of. If you’re worried about making a bad deal, speak to a real estate agent. That way, you have an experienced person fighting for your interests.
There are a ton of reasons to buy a house. Renting is pricey and leaves you in a precarious situation. There’s no guarantee that you’ll be allowed to remain when your lease ends.
When you buy a home, you no longer have to think about what anyone else wants.