Buying a home may seem to be a challenging proposition for most people, but in many ways it is better than renting a house. Even though buying a house is considered to have lots of issues but then, even renting is known to have problems. Renting does not provide any stability to the tenant. Also, the worry that you could be asked to leave at any moment, is also another reason why people should buy their own house. Even buying has its share of worries, as it involves a lot more money and making a decision that will have long term implications. However, when we compare both the options, it is seen that buying has various benefits which outweigh the advantages of renting a house. Some of these benefits are mentioned below –
* Appreciation of Financial value – Homes are always considered as a good, steady investment; because real estate always shows an increase in the value over time. Property gains are seen to take place after five years. Depending on the location of the property, the increase in the value of the house can be huge. The long waiting period, along with the reduction in the debt amount, will increase the value of the house. Real estate is a good way to get guaranteed returns. Nowadays, with the price of land skyrocketing, buying a house is certainly a good idea.
* Home Equity – When you purchase a home, the equity or the amount of property that you own increases. However, when you are paying rent, none of the money that you are spending will go towards increasing your equity. As a result, the only people who will benefit in the long run are the landlords. If you live in a rented accommodation, then you are spending a lot of money that will not go towards increasing your equity in anyway. If you purchase a house, then the mortgage payments will go towards increasing your equity. There are also rent to own options available these days. In which a part of the money paid will go towards the purchase of the accommodation. Increasing equity and appreciation will always be beneficial to you, as it will help you get better accommodations as the days go by.
* Residential Stability – One of the main requirements of every human being is that of shelter. Without shelter a person cannot live comfortably. Therefore, providing their family with shelter is one of the main concerns of a person. If the accommodation is rented, then there is always the worry of the rent being increased or they being asked to leave. Owning a property will take care of that worry.
* Credit Improvement – Purchasing a house and regularly paying the mortgage amount is a good way to improve your borrowing power. Regular payments of your current mortgage will make it possible for you to have a better chance of getting loans in the future.
The best reason to buy your own property is freedom from all those pesky landlords, with all their rules and regulations. In your own home you can set the rules, have pets or even practice with your band without any interference.