Have you been living in a rented apartment for years? Is moving from one home to another not a big deal anymore for you and your family?
Perhaps, you think you’ll be fine paying the house rent for the rest of your life. Well, perhaps, you need to think again!
Maybe it’s time to revisit your priorities and decide about buying your own home. Especially, if you’re well-settled with your family and make a decent income.
Here’s why you should consider owning a home instead of renting.
Your Home will be Your Asset
One of the top reasons why people aspire to buy a home is that they get to call it their own and keep it for their life. Unlike living in a rented home, they don’t have the fear that one fine day the landlord will give them the notice to evacuate just because he wants to sell off the property.
Your home is your asset, that’s right!
Renting means you have an expense to bear regularly- pay the rent to the landlord. But when you pay the mortgage installments for your house, you’re getting a part of its ownership. And once the mortgage is fully paid, it will be your property forever.
Since you have a share in the equity of the property, you can also take insurance and get cover against fire, flooding and other calamities. Make sure you choose the best homeowners insurance that protects you from threats like loss of use and covers the damage to home appliances, furniture, etc.
The Asset Value Grows with Time
House property is one of the assets that’s sure to gain value with time. Real estate and home prices have seen steep growth, and the trend is expected to continue even if the market cools down a bit.
So as the logic goes, investing in a home right now is much better than doing that a couple of years later because a few years down the line, you’ll have to pay a lot more.
You Get Tax Benefits
When you buy a new home, you get multiple tax benefits from the move.
First, you are allowed to deduct the interest paid on your house mortgage from your income. You also get the benefit of deducting property taxes from your income.
In a way, the more you earn and the more expensive house you buy, the more money you get to save on your income tax.
Inflation Won’t Hurt You
Inflation is inevitable. Whether the inflation rate is high or low, prices of commodities and living expenses are bound to increase as the years go by.
But the value of your home will be directly affected by the inflation rate. So if everything else becomes more expensive, the value of your property will also increase.
In this sense, if you own a home high inflation rates probably won’t pinch you that much. Besides, you’ll be glad you don’t have to pay high rent when the inflation rates soar sky-high.
You’ll Get Loans Easily
As you know, you get the entire equity in the house after you’ve paid the mortgage fully. This shows your creditworthiness and improves your credit score. Looking at your debt payment records, banks will be willing to give you new loans at affordable rates.
Even while you’re paying off your mortgage, if your record has been good, you can get a second mortgage. The second mortgage can be used to finance your expenses like buying a new car, remodeling expenses, etc.
You are free to Make Amends
Well, the best thing about owning a home is that you’re not at the landlord’s mercy to make amends.
Is the plumbing faulty? Do the floorboards look worn out? Does the wall paint look too dull or shabby?
Your choices are not governed by the tenancy agreement. You can get anything repaired if you think it’s necessary. You don’t have to get the landlord to approve these repairs or wait until the landlord thinks it’s time to get the place renovated.
Conclusion
Of course, there are many reasons to buy a home. But the most important one is that you and your family are ready to call one your own.
Buying a new home is a big investment and you’ll need to plan your finances. Maybe you’ll have to live on a budget for a few years until you pay off the mortgage.
Make sure you’ve thought everything through. You should be in a position to bear the responsibilities that come with purchasing a house property.
If you’re ready to take the plunge, you have a beautiful future ahead of you!