Month: February 2021

When it comes to homeownership decisions, most people deeply contemplate first whether it is wiser to rent or purchase a residential property. The truth is there isn’t a correct answer to the question: “Is it better to purchase or just rent a home?”

Obviously, the answer to this question will highly rely on you- your current situation, as well as your plans in the future. As you can see, there is no such thing as a clear-cut answer to this.

So, if you are feeling baffled whether or not purchasing a home is appropriate for you, you can look through the upsides and downsides; this is for you to somehow clear your doubts.

For instance, consider the length of time you will dwell in the home or location you are planning to buy. If you do not intend to reside there for more than five years, then probably, renting a place is a better option for you.

Nonetheless, if you are not going anywhere anytime sooner, then investing in a residential property is a less expensive option than renting a place in the long run. Then again, you need to ask yourself first if you have sufficient funds to be a homeowner.

The reason why your finances are a major factor in homeownership is that you will be responsible for anything that requires to be fixed. Of course, there would be no landlord to whom you can address your complaints with regards to what needs to be repaired.

Apart from this, there are other costs that you need to prepare yourself with such as homeowners insurance, homeowner associations, property taxes, and home loan insurance.

All these costs all add up and could be quite pricey in some cases. Now, you know why it matters to ponder on the house you could afford.
It is essential to note that owning a house ranks as one of the most worthwhile and fascinating experiences in life. We look forward to the delight of having a space that we could confidently and safely call our own. Surely, this grants us the sense of pride that we have achieved it, and that we could afford to buy a place we can call home.

For all that, there are pros and cons to homeowners. Indeed, these must be taken seriously before making the final decision. Investing in a residential property can be a major challenge; you’ll end up regretful or loser if you suddenly give up in the midst of the homeownership process.

a) We are well aware of the significant increase in price when it comes to property investments over time. Unquestionably, a home purchase is deemed as one of the smartest investments we can make.
The price increase in residential properties is rapidly rising nowadays, and we cannot deny that it looks like the trend is likely to continue. So, if you purchase a home now, your investment is guaranteed as it has more opportunities to grow in the long run.
As you know, properties like this are sure investments because they do not depreciate as years pass by. Unlike investing in properties and things that depreciate over time such as a car, real estate does not decrease its value – it continuously increases in worth even if its owner gets older and older! Isn’t it a wise decision to put your hard-earned money in a safe long-term investment by buying your own home?

b) Your investment won’t be put to waste because you can always sell your home whenever you please. You may consider selling your residential property and avoid dealing with capital gains tax. Then, after selling your home, you may consider upgrading into a larger home.

c) Be able to save more bucks and pay less tax. You could subtract the interest you pay on your homeowner’s loan from your taxable income. Are you aware that new homeowners who have a current mortgage tend to obtain the greatest tax benefits? This is because of the newer home loans, the higher the interest payment monthly- which implies that there are greater tax breaks.
Since taxes for real estate are deductible, homeowners are provided with more perks. The majority of the homeowners commonly find that investing in their own home costs remarkably less as compared to renting a home.

d) The residential property will be yours. The best thing about owning your own home is that you can do what you want with it. You can design it according to your preference, paint it, and make other major changes. These types of alterations are typically not allowed when you are only renting a home.
In short, you have the authority and freedom to make any decision regarding the house. Things like these are impossible to do if you are merely renting a dwelling place. There is no need to ask your landlord’s permission if there is anything that you need to add or change.

e) Having your own dwelling place will provide you with more inner peace. It is unnecessary to deal with rent increases or inconsiderate landlords. You can finally live in your home for as long as you prefer.
And, more importantly, you will have a fixed payment per month for a length of 30 years. Isn’t it wonderful not to worry about undesired surprises?

f) Interest rates are presently low. This conveys that mortgage is less expensive these days. In some locations, your home loan payments could be less than the amount you pay for renting a home.

g) For pet lovers, having your own home can give you the freedom to take care of many pets as you want. There is no need to argue with a landlord about having several pets, so you can relax and spend a good time with your pets.

h) Investing in a home will allow you to delight in pride of ownership. Since the house is yours, you and your family can enjoy a sense of stability and security. This is something that you cannot feel when you’re only renting a house.

i) Having your own space can offer you the opportunity to earn from a new side hustle. You can possibly make money by using your spare rooms so that you could settle your loans or subsidize your mortgage.

j) For newlyweds who are purchasing a dwelling place to grow into, the funds you earn from those spare bedrooms could be used for the schooling of your kids in the future. Having extra income is the best, isn’t it?

k) Homeownership is labeled as forced savings. This means that a fraction of your monthly payment will proceed to the principal of the mortgage. Please be guided that this should not be regarded as a cost but a savings plan.
This implies that you are only paying yourself by establishing equity. Moreover, this would be significantly helpful when you are all set to retire.

l) Having your own home is considered a buyer’s market. Put simply, it is not necessary for you to settle for anything less than the type of dwelling place that you have long dreamed of.

m) You can enjoy more privacy. Purchasing a house will also offer you the comforts of increased privacy. You don’t need to deal with a landlord who always sends you endless notices. You can even schedule the best time for anything that needs repair or other home services- this is particularly helpful when you need something to be done urgently.
Whereas if you are only renting a home, your landlord will constantly disturb you for some different reasons, and sometimes he or she won’t even settle matters with urgency. You will always need to wait for your landlord’s permission and availability.
Besides, if you want to increase your privacy, even more, you can consider having some physical home additions like home security systems, front yard fences, landscaping, and the like. Isn’t it nice to be in control of your family’s comfort and privacy?