5 Reasons to Buy a Home instead of Renting
In this economy many potential first time home buyers still believe that renting a home is the much smarter option as opposed to buying. After all, with renting you can avoid monthly mortgage payments and having to worry about keeping up maintenance, right?
As it turns out, renting may not be as beneficial to you as you might think. Truth be told, there are more benefits to saving up and buying than can be found if you just try to keep renting homes. While these benefits may not be immediate, they will eventually show themselves in time if you’ll give them a chance.
1. Buying Wins in the Long Run
This benefit is a case of doing the math on both scenarios. In the beginning, renting is much more economically sound as opposed to making monthly mortgage payments, but that advantage lasts only so long. The money you spend on rent does eventually add up to what you could have put into a down payment. Normally renting is only a financially sound plan for 3-5 years. After that you’re essentially wasting your hard-earned money. At least with paying a mortgage you’ll be paying for something that will be yours.
2. Buying Means you’ll Own It
Home ownership is still one of the most satisfying feelings in the world. The plus side of paying off a mortgage is that you’re building equity in your home that will help you further down the road. Credit bureaus and other lenders will take you much more seriously as a homeowner than as a home renter.
3. Rent is rarely fixed
If you make the move and get a fixed-rate mortgage, you’ll pay the same rate throughout the term of your mortgage no matter what happens to the housing market. The same cannot be said for rent. If you’re not careful when working out the rental agreement with the landlord then there may come a month when you find that your rent has been raised due to a flux in the housing market. If your monthly budgeting doesn’t take that factor into account then you may be operating at a deficit for a few weeks and/or wind up being late on your rental payment.
4. You’re buying a roof over your head
As long as you keep up with your mortgage payments then you’ll never have to worry about being evicted from your home. In a rental agreement, the landlord can put in a clause that states they can evict you if a potential buyer comes along to look at the home and makes an offer. Buying a home puts your life in your hands, with no one else being able to tell you to pack up and leave.
5. Do as you please with your Home
Buying a home means you can do whatever you like with it (i.e. painting, remodeling, decorating, etc.). Renting a home means you have to run things by the landlord and more often than not they’ll be against any ideas you may have for revamping the home you’re renting from them. With a home that you own you’re free and clear to paint the walls any color you like, hang whatever wild curtains you see fit, and add a balcony if your heart so desires.
Buying a home may take longer for you to save up for, but the time and monetary investment is well worth it in the long run. Hone your patience and wait for the opportune moment to make a move on a house that fits what you need. You’ll be saving yourself the hassle of dealing with a landlord and establishing a warm cozy home for you and your loved ones for years to come.
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