Are you weighing up the decision of whether to buy a home or continue renting? This can be a hard choice to make as there are a number of things you need to consider before buying your first home.
Both renting and buying present a number of pros and cons, but your financial situation may be the biggest factor of all.
However, if you think of the long-term benefits of home ownership, the advantages of purchasing your home stack up pretty well.
Here are a few reasons why buying can be the better choice:
1. Freedom and stability
One of the joys of home ownership is the ability to make your home feel like your own. There are no leases to worry about and no last minute paint jobs to cover up when you decide to move. You will have freedom to make energy-efficient improvements, which can reduce your monthly utility bills, and you will also be kick-starting your financial plans for the future.
2. Build equity and investment for the future
Despite the fact that renting offers you more freedom and flexibility to live where you want, you can’t build equity like you would if you own your place. Even if your home doesn’t increase in value, you will be building equity as you pay down your mortgage, as long as your home maintains its value.
Plus, if you buy a home and choose to leave it, you can rent it out and cover your mortgage with rental payments. With this in mind, it pays to choose a home that will make a good rental property in the future.
3. No more rent increases
When you buy your property, your mortgage repayments will likely remain the same dependent on your payments with the bank and assuming the interest rates don’t fluctuate too much. However, the rental payments may increase in accordance with the market. This offers peace of mind in addition to simplifying your budget and setting future savings goals.
If you are ready to commit to home ownership, buying a home can be a smart financial move for the future.