Though renting a home may sound feasible and cost-effective at first, it’s a better idea to buy a home than rent it, especially in the long run. Home buying offers a bunch of benefits to people. Read on to learn the top benefits of buying a home over renting, whether you’re about to tie the knot, want to set roots, or want to achieve the American Dream, and how this decision will benefit you and your future.
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Benefits of Buying a Home over Renting
Build Equity
If you’re a newly married couple, you will want to grow your equity and look for ways to secure your family’s future; And what better way to ensure this than to buy a property. Real estate is, and always will be, the number one investment in the world. Home buying gives you the perfect opportunity to build equity which you could never achieve while renting. As property values increase, the money you spend on your house today will provide significant returns in the long run. Every time you make a mortgage payment, a portion of that payment pays down your loan each month. Thereby building your equity in that home. Not only that, home values steadily increase by 3-5% annually.
Make Home Improvements
Another great benefit of home buying over renting is the fact that you have the power to make home improvements as you like. You want to give your space a personalized feel reflective of you. Moreover, you can easily make changes to the house to add functionality and make it more energy-efficient. Add solar panels, tear down a wall, add an additional room, all at your own leisure. No more depending on a third party for every change you wish to make.
Besides this, home improvements improve the functionality of your space and the value of your property. Therefore, it is a win-win both ways.
Sense of Belonging
You will eventually have to find another place when you rent a property once the lease ends (and is not renewed). This means you can never truly enjoy the sense of belonging that one wants to experience at some point in life. There is never that permanent sense of stability. However, if you buy a home, you can enjoy all the community advantages and experience the sense of belonging needed to feel safe and secure. More importantly, when you have a sense of belonging, you can raise your kids in a secure environment and peace of mind. Children in homes owned by their parents thrive much more than those in rentals, as they tend to understand the stability that their parents have provided.
Convert it into a Rental Unit
Once you buy a home, you can always rent it out and buy another place once your family grows (Click here to check our article on Investment on Rental Properties). Renting your home will generate a source of passive income. You can also use that money to pay for your new home.
For more information or assistance with the home loan process, contact us. We help people just like you realize their homeownership goals.