Buying a house is an expensive investment and a huge decision, but it is a dream of every individual on this planet. With property prices skyrocketing, it can be not easy to own your dream house, but it is a place that you call home. Additionally, buying your own home gives you a sense of accomplishment and pride.
Now renting a home seems like a good solution as you don’t have recurring tax payments or insurance expenses; however, you still need to maintain your rented house. If you are looking for a property, Mynd.co is an excellent real estate platform that can help you find, buy, finance, sell, and manage residential investment properties easily.
Keep in mind that there are several benefits to buying a home and to help you decide. We have arranged five reasons why purchasing your own home is a better than renting:
Long-term Investment
If you are looking for a long-term investment, buying a home is a great option. Even if you purchase a house on a mortgage, eventually, you can still sell it at the end of making all payments. Whereas, if you rent a home for 20-30 years, you will never be able to gain that rental payment back. By investing in your house, you will be able to save money for the long run and not be in debt to any landlord.
Increases Owner’s Net Worth
As mentioned above, buying your own home is an excellent investment, and over time, it can also help you build wealth. Remember, a rented home is not an investment but a temporary expense you need to make every month. At the same time, a property can increase its value over time, improving your net worth and not your landlord’s wealth. For instance, if you purchase a property for $300,000 and its value increases to $340,000, you already profit from your real estate property.
Skip Rental Hikes
When renting a property, you need to pay a certain amount of money each month. Keep in mind that landlords are entitled to increase the rent every year when the lease is renewed or even periodically. The owner can even sell the apartment entirely; owning your property can be very useful as you won’t have to deal with rent hikes or eviction. And if you are not able to match the rent that the landlord expects, he can even choose to find a new renter. Rent hikes are very common, so if you decide to make sure that you consider all possibilities.
Lower Living Expenses
Homeownership is a great idea if you don’t want to have high living expenses all your life. Even if you mortgage your home, it reduces your living expenses. Keep in mind that the ultimate goal is to be rent-free and mortgage-free, but until that moment, you still have to manage your finance well. Because when you buy a house, you need to pay insurance and taxes, but it is pretty reasonable when you compare it to renting a place. With your living expenses reduced, you can focus on keeping your house and improving your way of living.
More Stability
When you buy your own home, it gives you a sense of stability because it offers peace, privacy, and no fear of being evicted. For instance, if you want to start a family, having your own home will help you settle down and give your children a place to call their very own. As a tenant, you are always unsure of your house as you might need to shift for several reasons, like a rent hike or eviction notice. So if you want to build a life for your kids, you should consider a predictable environment where you can also call the property home.
Final Thoughts
These are just some of the many reasons you should own a house instead of living as a tenant. The beauty of having your own home means that you can renovate and do whatever you like with it. Whether you want to add new furniture, decor, or even remodel rooms, it is your home. If you are interested in getting your own home, here are a few tips to help you get started.
