Despite recent stats suggesting more people rent properties in the current economic climate than buy, it’s actually more beneficial to invest in your very own home.
There are several benefits of buying a home vs renting one, from longterm costs, equity factors, and fewer restrictions when it comes to making changes.
Here are five keys reasons why you should buy not rent.
1) Your Mortgage Won’t Waver
Unlike the rental market – where a landlord can increase your rent when a lease runs out – a home mortgage is not subject to fluctuation.
When you take out the mortgage, it’s unlikely that the rates will change. This means that buying a property, rather than renting, is more stable and predictable.
What’s more, it should remain so for up to 30 years.
Those who rent can find the impending renewal of a lease to be a worry, in case the landlord raises the rent. For some, this can mean having to relocate.
Mortgages tend not to create this kind of annual panic.
2) Decorate or Amend However You Like
If you own your property, you can decorate it however you see fit, without having to run it past a third party.
Those that rent are often banned from making any significant changes to a house or apartment. While you can often furnish it how you like, decisions about paint color, flooring, appliances, and fittings are not yours to make.
Some rental properties don’t even allow tenants to hang pictures on the walls or subscribe to particular TV packages.
With a property of your own, you can make these decisions for yourself. You can also extend or amend the property should you wish [subject to planning permission].
This is why buying is the better choice.
3) Tax Benefits
Homeowners experience tax benefits.
This includes being able to deduct mortgage interest and property taxes at the end of the financial year.
As a result, you will potentially save a lot of money, otherwise lost in renting.
4) Rent a Room
If you own a house, it’s possible to earn a side income by renting out your spare room.
Thousands of homeowners with an extra bedroom join sites such as Airbnb or GumTree to offer out their extra room to tenants.
One way of doing this is to lease it to someone who works in the area but lives further afield. This way they will pay you to stay there during the working week and you’ll have the place to yourself at the weekends. This can work the other way around too.
Many rent out rooms full time, which is an even bigger earner. If you have space to do so, it makes sense as an extra boost to your income.
5) Cheaper Down Payments (Even $0!)
There are loan offers and government assistance programs available that offer very low down payments. In some cases, even $0.
This isn’t necessarily always the case, and there are also closing costs to consider, but there are schemes to help potential buyers get themselves on the property ladder for very low deposit amounts.
For zero down, VA loans, a USDA loan, or the Chenoa Fund would be a good place to start. And, naturally, you must qualify.
Benefits of Buying a Home Vs Renting
These are just a few of the benefits of buying a home vs renting, and there are more to be had.
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