Posted on October 5, 2015
If you’ve been renting for a while, there’s a good chance you’ve seriously considered the idea of buying your own home. While there are definitely benefits on either side of the fence, it can be hard decision to make. However, there are plenty of rewards that go hand in hand with home ownership, so here are a few reasons why you should bite the bullet and buy instead of rent:
One of the best parts about buying a home is that it is yours! No longer will you have to call the real estate to ask permission to get a pet, or if you can hang a picture frame on the wall, as owning your own home gives you the freedom to change things as you see fit. You no longer run the risk of your landlord deciding to sell up and having to find a new place to live, or having your weekly rental payments increased. While you are still left with a mortgage, remember that with each payment you make, you are getting closer to full ownership of the place – not to mention building equity along the way!
Speaking of equity, purchasing property is the only way to build it. When you pay rent each week, you’re essentially paying off someone else’s mortgage and growing their equity in the long run. Why would you want to do that when you can do it for yourself? Equity is the difference between the value of your home and the remainder of your mortgage payments, and can be utilised to complete home renovations, take a big holiday or to use as a deposit for a loan to purchase another property!
When renting over an extended period of time, especially in the same residence, it is likely that your rental payments will gradually increase as per market demand. This can make it difficult to stick to a savings plan, particularly when your income remains the same. If you buy a home, however, your mortgage payments will likely stay the same (as long as interest rates don’t vary too much). This makes it much easier to budget and create a savings plan for the future!
If you are ahead in your mortgage repayments you may have extra funds – or ‘redraw’ – that you can use for emergencies such as repairs, renovations, or even a holiday! It helps to make sure you make your repayments on time and even look at the frequency of your repayments. There may be some benefits to making weekly or fortnightly repayments, rather than monthly.
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