If you have never owned a home of your own before and you are just starting out, it is important to weigh the benefits of renting a home against the benefits of purchasing a home outright. When you are weighing this decision, there are a number of factors that you should closely consider before making a final choice.
While the process of buying a home and the process of renting are both riddled with their fair share of pros and cons, the reality of the matter is, buying a home is the best possible choice for those who are in search of their first residence.
There are a number of benefits to home ownership and those who refuse to acknowledge them often doom themselves to a lifetime of dealing with rental related issues. If you are still in the process of deciding whether to buy a home, be sure to read on and learn more about the most important reasons why you should be considering purchasing a home of your very own.
1. Unparalleled Levels of Stability and Freedom
While renting a home can offer some short term financial relief, however, the home is never truly yours. Imagine having to call a landlord and ask for permission every single time you want to make even the slightest alteration to the home that you are paying to live in each month. In most instances, a landlord will not even allow their tenants to paint the walls a new color without being given final say on the topic.
Being able to make the home that you purchase feel like your own is one of the most crucial reasons to buy instead of rent. You will never have to worry about a lease of any kind and the level of stability that home ownership provides is hard to beat. Should you decide to move from the home that you have purchased, there are no last minute cover up jobs needed as many homeowners often find interested buyers who are willing to buy the home as is.
If you want to make improvements that allow you to save money on your monthly utility bills, you are able to, without having to wait for permission from a landlord who does not always have your best interests at heart. Purchasing a home of your own also enables you to start planning for your financial future and gives you a chance to get off the seemingly never ending hamster wheel that is home rental.
2. The Best Investment For Your Future
Sure, renting a home might offer you a certain amount of flexibility when it comes to living wherever you want and there is also a certain amount of freedom involved too, but you are essentially throwing money down the drain each month without having any chance to recuperate it. In order to build equity and be able to plan for your future, building a home is the obvious way to go.
The home you build will increase in value, and as you continue to pay down your mortgage over the course of time, the amount of equity that you have in the home will increase significantly too. As long as the home itself is able to maintain the same value, your level of equity only continues to increase, which in turn allows you to either sell the home for profit, or even rent it out using its equity to purchase another – which ultimately makes it a tax deduction.
If you are working towards the goal of long term financial freedom, you should always keep in mind configurations that will best serve the rental market in the future when you’re ready to rent it. Open plan living area, number of bedrooms, entertaining area, and natural light are just some of the features found to be favorable for tenants looking to rent a property.
3. No More Monthly Rent Increases
Those who buy a home outright are able to establish an ironclad monthly mortgage agreement. While there are some who will choose an adjustable rate mortgage in certain instances, in hopes of taking advantage of the low monthly payments that are offered in the beginning of their agreement, the vast majority of monthly payments will remain the same for a homeowner, even when they have lived in the residence for a number of years.
Once you established an agreement with the bank who is responsible for providing you with your loan, the monthly mortgage payments should not fluctuate too dramatically in one direction or the other. Interest rates may fluctuate from time to time, but these are slight in nature and will not cause a homeowner to have to re-adjust their budget in any meaningful way.
On the flip side of the equation, a rental agreement does not tend to remain the same over the long haul. Rental payments often increase due to factors that are entirely outside of your control or at the landlord's personal whim.
If you'd like to avoid unexpected monthly rent increases and simplify your budget so that you can successfully plan for your future, then buying a home is definitely the best way to go. Those who are ready to commit to the ownership of their own residence are able to numerous financial benefits over the short and long term.