Turning the dream of homeownership into a reality can be both exciting and daunting at the same time. Many renters may not realize that they may have the means to purchase their own home.
There are many benefits in homeownership when compared to renting; whether it is building equity or getting tax advantages, it is a great investment for your future. For the majority of people, their home is their largest financial asset and a major player in their investment portfolio.
Below are some advantages of owning your own home:
• Control over your property
• Freedom to decorate and landscape how you like
• Fixed mortgage payments
• Pride and comfort in owning your own home
• Housing security
Is homeownership for you? Below is a quick comparison between renting or buying a home but you need to look at much more than the cost of rent or a mortgage payment to know for sure.
- Monthly costs may be equal to mortgage payments
- You will most likely be required to pay monthly utility bills
- Pay a deposit of first and last months rent
- You may be required to pay a deposit for damages, keys, pets, etc.
- Decorating costs is money out the window for you
- Due to low interest rates, mortgage payments can be slightly higher or equal when compared to rent
- Possible unexpected repair costs but it will add value to your investment
- Decorating costs is money into your investment
- Rent money goes to your landlord with no investment potential for yourself
FLEXIBILITY TO MOVE
- You will have to wait until the end of the lease term to move without penalties
- Rent rates may be expensive in areas you desire/need
- Can move out almost whenever you want