Buying rather than renting is a better choice for several reasons, primarily including the opportunity to build equity and the stability that home ownership offers, as rent prices continue to increase every year. Below are three reasons outlining why buying is a better option then renting:
Building equity is a key consideration to most homebuyers when deciding to transition from renting to ownership. Buying your own home with a fixed rate mortgage essentially acts as protection from inflation in the rental market. Every year rental prices will increase, no matter the area in which you live, leading you to sink an ever-increasing amount of money into your housing expenses. However, with a fixed rate mortgage, your annual payment remains fixed across the term of your mortgage essentially holding your “rent” i.e. mortgage payment constant for fifteen or thirty years depending on your loan, while your friends will be stuck paying ever increasing rent.
Home valuations continue to increase consistently meaning that your investment in your home will increase in value. In the long run, it is actually more cost efficient to own your own home! The money that you are currently using to pay for rent could instead be used to build equity in your home. Owning a home helps build a valuable asset for you and your family!
You can do whatever you want with it! Your home, your call! Instead of getting a landlord’s approval or being constrained by rental guidelines, you can do whatever you want to your house. You can fix flooring, you can add appliances, you can essentially do anything! Since this house is your home, it is worth investing time and money into it. You can create your dream home!
Tired of moving? Need to get away from your roommate? Well, you can stop moving! When you own your own home, you can enjoy a level of stability missing in rentals and can finally settle down! You can live there as long as you want! It is a pain to keep moving and to constantly be making decisions about where to live next or renegotiating your lease. Owning your home frees you from making those constant decisions!
Don’t look back! Now is the time to buy, especially in 2020! Interest rates are very low and homes are particularly affordable. Buying a home will be one of the best decisions you will make!
Author: Austin Anderson