Buy vs Rent
The following are some great advantages to buying and owning a home instead of renting. For one it is largest and most important investment you will ever make. Here is a list of the top 4 reasons one should buy their own home.
1) Equity: As soon as you buy your house you have gained considerable equity. A 5% to 10% down payment has given you 100% ownership of that property. As time goes by payments are made your mortgage decrease, the property has appreciated and your equity continues to grow. Even if your home never appreciates which is very unlikely and stays the same you are continuously paying down your mortgage. If you rent, your payments are similar to what a mortgage payment would be, with really gaining only one main benefit and that is having a roof over your head. You are literally paying someone else’s mortgage and creating equity for someone else
2) Sense of Ownership: It's a great feeling buying your own home. There is a great sense of ownership and accomplishment. It's great feeling knowing you can paint the walls without consequence. Having the ability to hang pictures whenever and wherever you want. Also being able to remodel and renovate, knock out walls, add bathrooms and pretty much do whatever work or improvements you want with gaining all the benefits for improving your property.
3) Stability: Owning a home gives you great stability in a couple of ways. It's a great feeling to know that if you lock in a mortgage rate for 5 even 10 years that your payments won't change. As far as renting goes, depending on the municipality’s rules, a landlord generally can increase the rent whenever they want and to whatever rate they want.
4) Future: Owning your own home gives you some great advantages for your future. Aside from building equity in your home you are paying down your mortgage. The great thing about a mortgage over rent is that eventually you pay it off. Once you have paid off your mortgage no more monthly payments, this then dramatically increases your disposable income.
Don’t get me wrong renting serves a great purpose and for most of us it is where we start. However these are just some of the many reasons why buying your own home has many great advantages over renting. Gaining equity on a home that you can take pride in owning, which will greatly enhance your future while providing stability in the now, seems pretty good when your padding someone else’s pockets.
By: Dan Standeven