When it comes to taking the plunge into home ownership, there are a lot of excuses not to. It can be a fairly long process from start to finish and during that time, your entire life’s financials and credit history are examined with a fine toothed comb by several groups of strangers. Not buying a home is easy. Just paying a fairly small (comparatively) rent in an apartment or house is a predictable and steady expense that you can count on as you budget each month. Owning a home comes with some extra and non-fixed costs. Your mortgage may fluctuate monthly or yearly, and you are responsible for all utilities and repairs. Home ownership is a lot of responsibility, but it pays off in so many ways that actually taking the plunge and buying your first home will almost always be worth it in the end. Let’s look at some reasons why owning, even in today’s uncertain climate, is the best choice for you and your family.
Let’s get this one out of the way first because it is pretty much the most substantial reason for buying. Show me the money! This is where the money is really at for you. When you rent, your monthly payments are fixed and predictable, but that’s where the advantages stop. Renting, your money is going into the property owner’s equity and helping to pay the mortgage on their apartment building or house. The equity that that money builds is theirs to keep. The money you spend renting is gone forever for you, just like buying a soda or candy bar: it has high immediate value but little lifetime value. However, if you buy the house, then every monthly payment is like a little savings account that can go back into your pocket in the future.
Houses typically increase in value over time. Your loan amount is fixed, regardless of your house’s value, which means, that as your house and property increase in value, the amount of money you owe on it remains the same. Ten years after you buy the property, you could see a pretty hefty return on investment should you decide to sell your home at that time assuming it has increased in value on the market. While renting, when your lease is up, all that money you paid over the last ten years is gone.
Similar Monthly Payments: Greater Lifetime Value
If you really dig deep, you’ll see that renting a home can be just as expensive or sometimes more expensive than buying one, when it comes to the monthly rent or mortgage bill. Why pay a similar amount each month when you could just buy and see a similar monthly allotment in your budget. And, that brings us to our next point: When you own, you OWN! It’s yours to do what you want with!
Greater Quality of Life: Home Customization
Ever wanted to hang a beautiful family photo or treasured band poster in your rented house or apartment but realized that the damage to the wall could cost you your deposit? When you own the home, you can hang a picture on every wall and no one will care but you because you own the place! When you buy your first home, after the dust settles and you finally get to unpack and decorate, there’s a realization: you get to put whatever decorations you want wherever you want! And that, ladies and gentlemen, is worth the price of admission right there. Your home. Your rules. Can you really put a price tag on that?