Are you renting for a long period already? Is your rent cheap? Is your landlord approachable? Have you been able to do the changes you desire? If you are already fine with this, then I guess you don’t want to transfer to a new place to live in. However, you should. Having your own property happens to be a good move.
When you think you’re almost retiring, several financial professionals have discovered that having your own house is your best move. For others, they do not think that way.
You should plan for your future to be more stable. Investing in a house early would mean you can pay it off early too. When you reach 60 years old, you don’t have to worry about where to live for the rest of your life anymore. People who have their own house are also more financially stable than those who don’t.
1. Being able to greatly increase the value of your assets .
2. Building equity
3. More power for borrowing
4. Gaining stability
5. Choosing the HOME you want
Everyone really wants to cut costs on taxes. You get no tax breaks from spending for rent, although once you purchase a house for sale, you will be able to deduct the interest of your mortgage and most of your payments in the early stages that are related to interest.
- Being able to greatly increase the value of your assets
You can often realize a big capital gain on your own home if you stay in it for up to 25 years. Statistics also show that the national home price in the U.S. have risen 200% and up since 1970. You may get this type of return on most investments. Often, your house value will keep up with inflation in addition to one or two percent.
- Building equity
So you want to pay off mortgage. Along the way, you are building up equity in your house. And for that reason, you possess more of your house as you pay off your mortgage. Again, you don’t get this benefit from renting. Your mortgage can be viewed as a “forced savings plan” which will pay you back later down the road.
- More power for borrowing
If you rent, you may have experienced difficulty borrowing money. Even though you get approval for just about any type of loan, the interest rates will tend to be high, whereas those who own a home have something, they can use to borrow against. Homeowners are considered more secure by lenders — which is another benefit to gathering equity. The equity you build up in your home allows you to secure loans easier.
- Gaining stability
The amount of rent you pat is up to the owner of the apartment which means you can negotiate terms such as no increase in rent for five years. However, when you own a home you will be able to lock in your interest rates for a period of up to ten years. Homeowners know exactly what they pay each month towards their mortgage for the entire time, which you cannot do when renting.
- Choosing the home you want
Do you prefer a certain wall color? Do you like a specific wallpaper pattern? Have you always wanted wall-to-wall broadloom? If you have the money to pay for you home, then you can make all the changes you want. You own the home so you can choose how to furnish it, decorate it, and decide on how much to spend on renovations. You won’t be fined for scratches in the paint and you choose to make repairs. If you plant special plants in the backyard, you won’t lose them as you would if you changed rentals.