When it comes to buying a home as opposed to renting a home, it actually makes more sense financially to buy one than spending money every month on rent for a home.
Here are three of the best reasons why many people opt towards buying a home rather than renting one, and why you should consider buying a home over renting a home, too.
Perhaps one of the most popular reasons for buying a home is that you will be able to do whatever you want to do with the property! This means that you can paint the kitchen yellow, change the flooring, install new lighting, and basically anything else you can think of! Gone are the restrictions of renting where you couldn’t renovate anything or paint the walls different colors for fear of losing a security deposit or upsetting your landlord. If you choose to upgrade or renovate a home that you own, not only can you enjoy the upgrades while you live there, but they can increase the overall value of the property itself if you ever decided to sell it and move somewhere else. If you were to rent a home, you would first have to obtain permission for a landlord before doing any sort of remodel, and you would spend your own money on something that you won’t get an ROI (return on investment) from. If you’re looking for freedom, buying a home is the way to go.
Buying a home, while a big financial step, can actually be more financially secure than renting. Obtaining a fixed-rate mortgage when purchasing a home means that your mortgage will never change. Additionally, with the mortgage payment making up the bulk of the owner’s overall housing payment, this results in a great deal of stability in terms of budget. Renters, on the other hand, are at risk of having the amount of rent that they pay every month rise every year, oftentimes with little notice from their landlord.
Equity is a Game Changer
Whenever a homeowner makes a payment on their mortgage, some of that payment pays down the loan itself every month, which results in giving the homeowner more equity in their home. Every month, this loan paydown is required as part of the mortgage payment; however, the owner is required to invest in their own home, meaning it’s almost like forced savings that helps to benefit the owner as opposed to all of a renter’s monthly payment going directly to a landlord. Would you rather pay your own mortgage and own a house at the end, or help your landlord pay the mortgage on your rented home? We would rather own a home at the end of it all!
Thank you for reading our real estate and homeowner’s blog. We are Weichert Realtors – The Place of Houses, and we’re happy to have helped you learn more about buying vs renting a home!