Why Buying is More Affordable and Financially Better Than Renting
Jul 14, 2022
When you start living independently, your only option might be to rent. Still, once you have accumulated funds in your savings accounts, you have two options: to buy or continue renting.
And while it might be tempting for you to continue renting given how convenient it is, it might be cheaper for you, in the long run, to choose to buy over renting.
This article will discuss how buying could be more affordable than renting.
Buying a Home Lets Grow Your Wealth
Remember that when you buy a home, it’s yours once your mortgage is paid off. Given the current state of the housing market, your house will only grow in value. Not to mention that once you finish paying your mortgage, you no longer have to pay to have a roof over your head. It’s yours, offering you the chance to purchase another home, grow your wealth, or put your assets elsewhere.
Investment Income with Real Estate
Once you own your house, you can purchase more land or houses to build your net worth. Renting it out as an Airbnb or to a tenant will bring you supplementary income, meaning your money will come in with little effort. Owning more properties is possibly the best way to continue growing wealth, as it’s more secure than owning stocks or flipping cars. In addition, you own the properties you rent out, and their value will likely increase over time.
Homeowners Get Tax Benefits
The government shows much love to citizens who own property. Once you become one, you’ll be eligible for the tax benefits that come to homeowners. So not only will you be getting the chance to own the place you live in, but you also benefit from it by having to pay less in taxes each year.
A House is a Stable Environment
You won’t have to worry about loud upstairs neighbors or your neighbors hearing your conversations. You won’t have to worry about a constant flow of neighbors coming in and out of your apartment. No noise disturbances, no landlord raising your rent, and no having to drive to a laundromat. And if you plan to raise a family, there’s no better place to do it than in a property you own.
It’s Your Home, Do What You Want With It!
It’s your home! You don’t have to ask your landlord to renovate it for your needs. Instead, do what you want with it. Add as much furniture as you want, paint the walls whatever color you like, and change your refrigerator and washers as often as you like! Your house is your own!
Buying a Home Will Be Financially Better Long-Term
It’s the biggest reason you should consider owning a house instead of renting an apartment. If you keep renting for the rest of your life, you’ll be paying a lot more than your peers, and you’re not going to get the chance to increase your wealth the same way your peers did.
As a financial goal, you should plan on buying a home. It may start with organizing your finances, like saving for a down payment or understanding your credit score. Next, you can learn about mortgages and the interest rates that will adjust to current market conditions. And you will want to work with knowledgeable real estate agents that can help you with your housing needs.
In summary, having a home is probably the best investment you could make in your life.