Have you been searching for houses? Here is a guide that can help you buy one. Additionally you can learn the real difference in purchasing a house vs. renting it. There are number of factors that you must consider while making a decision.
The age-old dilemma in the real estate business, whether to rent or buy a house, have even realtors puzzled. There is no simple and universal answer to this question because the solution varies from case to case. However, if you are renting a house right now, it is definitely worth considering buying a property of your own. In fact, there are at least 7 compelling reasons why you should buy a house instead of renting one.
It’s been a free market, with prices going up
There is a myriad of things you can invest your money in, expecting a good return. As we have seen from the recent coronavirus crisis that managed to shut down the New York stock exchange, bonds and stocks aren’t the safest forms of investment out there. In this sense, buying a house is actually considered a long-term investment rather than a major expenditure since the market value of your property is likely to go up.
Admittedly, there were also several housing busts in the past couple of decades, but these present an excellent opportunity to purchase a property for a low price. If you decide to rent a house instead, you will be left out of the next surge in real estate prices that you might use to earn a pretty buck by selling your home.
Pets (and) ownership
Apart from the financial segment of owning your own house, you get the freedom you would never encounter in a rental. When you move into your new home, you can throw a homecoming party easily, which is something you wouldn’t do in a rented house because you are not the owner.
Furthermore, you’ll get the chance to lay the rules in your own house, which means that there could be a menagerie inside the house and not just a single goldfish. Moreover, if you’re having spousal issues or there is a break in the communicating with the kids, acquiring a house will usher in the sense of security and stability in the family.
No need to ask anyone for permission
If you have lived in a rental for a long period, then you are probably afraid to ask the landlord or the super to change a light bulb, let alone have the windows replaced. The reason for this is that you don’t own the walls or anything else in the house, except for your belongings.
However, if you decide to take the plunge and buy a house, you can get to whatever you like to the structure without the need to ask anyone for permission. Of course, don’t get carried away, as any major additions to the house need to be cleared with the local council because you might be in need of a building permit. Still, no bossy landlord hovering over your head telling you what you can and can’t fix inside your home.
You’ll pay less tax in the long run
Even if you don’t pay any tax on rent (which is virtually unheard of), you are still losing hundreds, if not thousands of dollars each month. Although the monthly interest you pay on your mortgage might seem like a huge waste of money, tax is deductible from this sum.
In many countries across the world, national governments subsidize the purchase of the first property for young people, mostly couples. It is far wiser for first home buyers to invest all they have in getting a bank loan to buy a new house than to deal with shady landlords for the next couple of decades.
You won’t have to worry about the rent going up
More and more cities worldwide are struggling with an exponential increase in rent that the local population cannot keep up with. This problem can easily result in an increase in homelessness, which is already occurring across several US states, most notably California.
Renting a house means that you are literally left to the mercy of the renter. Although most landlords are reasonable people who are realistic about determining the amount of the monthly rent, there are a lot of landowners out there who only about their personal profit. Once you buy your own house, you will never have to with the latter group of people ever again!
Although the exact installment might vary slightly from months to months, the payments you make towards the bank are pretty much fixed for the whole duration of the loan. It will come as a huge relief that you will no longer have to fear that your rent will increase starting from next month.
Benefit from low-interest rates
Banks might look like strong financial centers that never run out of money, but in reality, they are in need of cash like a living person. One way for them to get access to money is through loans that are designed and advertised like any other product; expect this one is financial in nature.
As a result, the interest rates can go quite low as different banks battle each other to attract the biggest number of clients. Prospective owners stand to gain the most from this struggle because they get are offered extremely cheap loans. In fact, some loans are so good that the monthly mortgage payment might actually be lower than the to rent or buy a house as compared to you are paying right now!
You would be surprised by the number of people who initially rented house, then decided to buy a home of their own, and now they are further investing in property. They have realized that that owning a place of your own doesn’t merely come with financial security and financial independence but an opportunity to make money as well.
Firstly, you have the opportunity to rent a property, and secondly, you can invest further in houses no one wants, revamp them, and sell them for a profit. As a result, you will pay off the initial loan you took out much quicker than the stipulated 30 years or so.
We hope that you now realize all the advantages of buying a house in contrast to renting one. Of course, homeownership is not a bed of roses, but the perks you have as a homeowner far exceed the upsides of being a mere tenant.
About the Author
Sarah Jessica Smith is a passionate blogger. She is from Sydney, Australia. Her affection with life and the stuff that makes it easier is evident from her blogs. Sarah’s key interests include lifestyle, adventure, entertainment, and home restoration/improvement.
I’m a blogger who loves to share new things with people. My life is all about new experiences and creating love on the earth. I spread good words so I do not leave the earth without any contribution.