Are you trying to decide whether you should buy a house or continue to rent? Then you have landed on the right page because we are here to help you choose and come to a decision that you are comfortable with. Even though buying a home is a dream for every living being, we understand that not everyone can buy a house. Thus, they prefer renting. However, renting can make you spend more in the long term, and buying a home is undoubtedly an investment with great returns.
Owning a house is better than renting, with advantages that outweigh the few cons stopping you from being a house owner. Thus, in this blog, we will discuss why it is the right time for you to buy a home instead of keeping on renting it.
- In the long run, buying is cheaper than renting.
If you think that you are saving money by renting, you are wrong, especially if you consider the long-term calculations. For instance, consider the most happening city in Australia, Sydney. If you rent a house, it will cost you around $800 per week. However, if you repay the interest and principal of the mortgage, you end up saving $2 every week, which means you are saving $208 every year.
Furthermore, if you put this money to good use, like in a savings account or invest it, you can save enough money to use it when you need it. Renting a house will not give you the same options.
When you rent, you are saving, you are paying for a property that isn’t yours, and there is no equity. Also, paying off something you owe is better than paying for renting something. Isn’t it?
- Being an owner of a house is a pride in itself.
The number one reason home buyers are increasing in numbers, as compared to renters, is due to the pride in ownership. When you own a house with your name on the lease, the satisfaction you feel for yourself is incomparable. The same is not true when you are renting because when you rent a property, the landlord can oust you anytime without any reason or a backup plan.
Also, you cannot decorate or make changes as you desire. The same is not true when you buy a house with your name. You make memories in it, and no one can oust you from there. Also, the pandemic has made everyone realize the importance of having a roof on your head that can provide you with security.
- It enables you to embrace saving.
When you are a homeowner or thinking about becoming one, you learn the art of saving. First, you keep saving enough money to pay for the down payment. It allows you to be a disciple. Otherwise, you will strike out on your down payment. Thus, you learn the art of saving. When you rent, you save enough to pay rent, but you don’t learn to save for an emergency.
Also, after buying the house, the discipline doesn’t go away because you paid the down payment. However, you have other things that require your focus, like buying a car, renovation, etc.
- You get tax benefits.
Another reason why you should buy a house instead of renting one is the tax benefit you get. The property taxes and mortgage you are paying are deductible, and they can benefit your finances a lot. You may pay only a little more or the same as the amount you will be paying as rent. Isn’t buying a home better than renting then?
- The home can work as a second mortgage.
There are times when we are backed up against a wall financially. Thus, it becomes essential to take a second mortgage, and with the help of the home you bought, you can. It can be through a line of credit or on home equity you have. The only disadvantage is that you can lose the house if you cannot pay it.
WRAPPING UP –
Homeownership is a decision that you cannot take lightly. Thus, look at every aspect and factor in the cons and pros of both buying a home and renting one. Then, use the above tips to decide that you will not regret it.