So, you’re starting to become independent and conflicted about whether to rent a home first or bite the bullet and decide on buying a home. While both options have advantages, depending on your capabilities, purchasing a house might be a better move. This article will dive into three main points that make buying a home a preferable choice.
Pros of Buying a Home
1. A Home is a Long-Term Investment
While buying a home costs more than paying rent, it leads to lower costs in the long run. Not to mention becoming a stable, long-term investment.
Imagine this: once you complete your mortgage payments, you own your home without monthly charges. Unlike when renting a house, you must continually pay for the rent month after month until you decide to leave the property. And if you decide to get a better house, you can sell the property for a profit and use that as a downpayment, an option not available with a rented place.
Not only that, but you can also take advantage of deductions when filing taxes. Interests paid against your mortgage, property taxes, and home improvement expenses are some items you can deduct from your total tax amount.
More than a real estate investment, having a home of your own provides you with the privacy, peace, and security that money alone can’t give. This also gives your kids and pets a safe space to grow, explore, and learn in a healthy and monitored environment. Additionally, a home is something you can pass over to your children when the time comes.
If you’re buying a home for the first time, check out this article about how to skip common first-time home buyer mistakes.
2. Freedom to Customize
Most of the time, making changes on a rented property is more hassle than it’s worth. Either you’re limited with how you can customize the house, or you can’t carry the changes once you need to move houses. Not to mention neighbor complaints you’d get if you’re living in an apartment complex.
But after buying a home, you’re the boss. Since your name is on the contract, you can do almost any renovation you can imagine.
Want to turn a room into a man-cave? Go right ahead. Elevate the kitchen décor? You got it. Do kids want a unicorn-themed room? Done in a snap.
Plus, since you’re staying there for the long run, you can enjoy the changes you’ve made to the maximum, an appealing factor to any potential home buyer.
3. Buying A Home is the Best Way to Build Equity
When renting a home, each payment goes to the landlord’s pocket, not the home. And when the time comes for you to leave the property, you get nothing.
Not so when you’re paying for your own home. Why, you ask? Because you’re building Equity with your mortgage payments.
The difference between your home’s market value and payments you made towards your mortgage is what we call Equity. What’s excellent about Equity is you can borrow from the stored amount and use the funds for just about anything. From emergency home repairs to paying for your next vacation, Equity is like an extra stash you can tap on for your needs.
Deciding between renting and buying a home does require a lot of consideration. We hope this article will shed light on the benefits of owning a home and inspire you to decide on the right call.
IjaraCDC offers home acquisition options to help people reach the goal of owning their homes. Talk to our experts today to find out more.