Many people wonder if they should continue renting or take the plunge into home ownership. While it might seem like a huge responsibility to own a home, it’s one of those decisions that can actually give buyers a peace-of-mind. When you are renting a property, you simply pay your rent every month and you have absolutely nothing to show for it down the road. Yes, you’ll have a place to live as long as you keep paying, but there is no end in sight.
If you buy a home, every month that you pay your mortgage, you’re actually building equity in your real estate; that’s like putting money in the bank. In fact, a typical renter will see an annual increase in their rent while homebuyers continue to pay the same mortgage payment, month after month until the home is paid off. This means that it’s not unusual to see rental rates that are actually higher than owning a similar property. Additionally, with the tax benefits available for homeowners, the cost of owning goes down even more, making it cheaper to own than it is to rent. Clearly, buying a home makes a much better financial option than renting.
Another important factor to consider when deciding if it’s better to buy or rent is the level of security you’ll have. If you are renting, you never know when the owner of the property will decide that they want to use the property themselves or they might even decide that they’re going to sell. This can leave you without a home and back out looking for a new rental unit. This can be a worry that hangs over your head the entire time you are renting. Fortunately, if you buy your own home, you’ll never have to worry about being asked to move.
Of course, renters also have to worry about decorating. They have much less control on what they can do with their living space. There are many tips for renters on making their rental home attractive, but renovations and remodeling are decisions that will be left up to the homeowner.