Are you on the fence about whether you should buy or rent your next home? If so, who could blame you? After all, there are a lot of advantages and disadvantages to each option.
On the one hand, if you rent your next home, you’re not tied down to one location or a mortgage. However, this also means making rent payments, which is money you’ll never see again. Is this really the right choice for your future?
We think you might be happier if you buy a home, and not just for the reason noted above. Keep reading for the top three reasons to consider buying vs. renting.
1. Positive Equity
First, when you buy a home, you’re making an investment. Not only are you providing a place for you and your family to live, but you’re also investing in your future. As you make payments on your mortgage, you’re building positive equity into your home.
Furthermore, as long as you take good care of your home, making improvements and repairs as necessary, you’re property will increase in value. Let’s say you buy your home for $250,000. By the time you get your mortgage down to $100,000, the home could very well be worth $300,000 or more.
If you were to sell the house now, you will get the money you invested back plus an extra $50K. And we know, you’re probably wondering, “How long to sell a house?” but the answer might surprise you. While it often depends on where you live, most homeowners can sell their homes in a few short months.
2. Freedom and Flexibility
If you choose to buy a home instead of rent, you also have the freedom to do whatever you want with your home. You can paint it whatever color you want inside and out. You can put up a fence, adopt a dog, or get 10 dogs.
If you were to rent a home, you can’t make any changes without authorization. And why would you invest money and sweat equity into someone else’s property? Furthermore, you might be limited on the types of pets you can have.
Additionally, when you own a home, you can make renovations and updates to further increase your equity. You can also rent out a spare bedroom, convert your garage to a private home gym, and more.
Buying a house grants you the freedom and flexibility to live life how you want to, on your terms.
3. Financial Opportunities
Finally, buying a home gives you unique opportunities to make money. We’ve already talked about building positive equity in your home. However, that isn’t the only way in which you can benefit financially when you buy a home rather than rent one.
For example, you can rent out a spare bedroom to make extra money each month. You could also rent out extra storage space in your garage, basement, or attic.
If you decide you’re ready to move, you can turn your whole home into a rental. Rather than selling the home for a one-time payoff, you can keep it and rent it out to families. This is a great way to develop a passive income.
Are You Ready to Buy a Home?
As you can see, it pays to buy a home. Just make sure it’s the right move for your financial situation, your life goals, and your current circumstances.
And if you’re looking for more lifestyle advice or tips for buying a house, you’re in the right place. Browse through some of our other articles to find more helpful information and guidance. Our website is here to provide readers like you with reliable content.