Why You Should Buy Your Home And Not Rent.
If you are thinking of getting off the fence and buying a home, read on. With record low interest rates and vendors motivated to sell, this is probably one of the best times to seriously take a look at buying.
Here are some reasons why you should buy a home:
- Your home is an investment. Historically, land values translated into home prices have appreciated over time. So this means that there is a very strong probability that your investment will appreciate over time.
- When you make a mortgage payment, you are building your equity. Over time after you have made your last mortgage payment, you will be mortgage free. This will allow you to use the equity in your home to make other investments at a very favorable rate of interest.
- A homeowner paying a mortgage is more valued in the eyes of lenders like banks and credit institutions than a tenant paying rent.
- Owning a home is more cost effective than renting. By paying the mortgage instead of rent, you are building equity in the home. When you pay rent, you are probably helping your landlord pay his/her mortgage. Sometimes the rental payment and mortgage payment are similar in amount, so why lose out on an opportunity to increase your wealth?
- If you get a fixed mortgage for a lengthy period of time, you will never have to worry about your monthly payment going up, as may be the case with renting a property.
- Owning a home means that you can make any changes you like without asking for permission. The changes can ultimately increase the resale value of the home. In a rental, you may end up with appliances, fixtures and colors that you don’t like, but are stuck with them.
- Almost everybody wants to own a home at one point in his or her lives. There is a certain pride of ownership associated with owning a home.
In April 2013, Gallup did a poll on homeowners in the USA and made the following comment: “Our data on homeownership provide strong support for the idea that the American Dream of owning a home continues to be alive and well.”
Everyone is entitled to own a home. If you are paying rent, have you explored the possibility of paying the same amount towards your own home? If you need any help in making a decision, talk to us. After all, we are the experts!