Much can be said about the decision to buy your own home. While others are satisfied with renting their current space, there are some who will push through the hard times to acquire their own property.
That said, you may be curious about the advantages of homebuying over renting. If you want to know what they are, look no further than our examples below.
- Buying Is Always Cheaper than Renting in the Long Run
Not many people are aware of this, but the money you pay through renting goes nowhere. Sure, the actual homeowner is making a living from you, so good for them. However, the amount you invest won’t build any equity at all, making your monthly payments useless in the long run.
Yes, buying a house can be costly, but think about the saving. It will always be more practical to buy a property that will gain more value over time.
In most cases, the payments on owning a home can be equal (sometimes even less!) to the rates of renting. You will gain more by investing in something that can be yours for a lifetime.
- Buying a House Enables You to Build Wealth
Yes, buying a house allows you to build lifelong wealth. You may see it as a mere place of occupancy, but it is actually a lot more than that.
Remember, properties tend to grow in value over time, which means that the longer you stay in your home, the bigger the payment you may receive once you decide to sell it off. If you buy your own house, you are basically investing in a big return, much like a financial boomerang. If you are renting, no one else will win financially other than the property’s landlord.
If you combine leverage with real estate appreciation, you may enjoy its big returns. For example, if you avail a property that is worth $300,000, you may receive a 10% return once it appreciates to $320,000.
- Buying a House Lets You Lower Your Living Expenses
The prices are going up, and the economy seems to be fluctuating as of late. By buying a home instead of renting, you are saving yourself from huge expenses. While some would like to live a mortgage-free and rent-free life, not many have the courage to step out of their comfort zone and stop renting a house. Do not make the same mistake as them.
Yes, you still have to pay property taxes and insurance, but that is quite minimal compared to the accumulated costs of renting a home.
- Buying a House Gives You the Freedom to Change or Own Everything
After buying a house, you have all the freedom in the world to customize it. No one is stopping you from renovating the kitchen, adding a swimming pool, or adding more countertops to your dining area. On the other hand, a rented property is full of limitations. The landowner may try to stop you every step of the way as if you have no freedom to change anything at all.
This lack of flexibility is what makes renting a home a least-favorite option amongst those trying to find a place to live in.
- Buying a House Gives You Stability
With your own house, you have all the privacy and stability that you would need. You do not have to worry about any sudden visit from the landowner, whether you like it or not. You can even set aside the fear of being thrown out, given that owning your own house entitles everyone in it to play by your rules. No one else has the final say but you.
Indeed, homebuying will always be a better option than renting. It may look like a costly option at first, but make no mistake, you are better off picking this route as the appreciation of the house’s value may land you bigger earnings in the foreseeable future. By renting, you may never enjoy any of that at all.
If you are looking for a reliable real estate service company in the U.S., look no further than our expertise here at Evergreen Investments. We are here to help our clients gain financial independence by way of homeownership and investing. Call us today to learn more about homebuying investments and other related details.