Buy or rent? This is one of the more common questions that comes up when someone is looking for a place to live. Sometimes, the decision is made before the search even begins, but if you aren’t sure, it can be a tough choice.
Each one has its positives and negatives, but since so many people seem to be afraid of mortgages, we thought we’d highlight some of the main benefits of buying a home over renting.
You’re Building Equity
The concept of making monthly payments to pay off someone else’s mortgage instead of your own is one factor that draws a lot of people to buying over renting. You may be paying down interest during the first years, but as time rolls along your payments reduce more and more of the principal. If your home increases in value during this time, you’re building even more equity.
Design & Renovate As You Please
When you buy a home, it is yours and you don’t have to consult with anyone to make changes. This includes small renovations, large renovations and any design elements you want to change. If you feel one of the bedroom walls would look better in purple, or that wall separating the kitchen and dining room should come down, you’re free to proceed as you like.
Stability & Security
Buying a home that you live in for decades, creates an incredible sense of stability and security for kids, grandkids and anyone else in the immediate family. It acts as a home base for get-togethers and scores of memories, plus it provides financial security later in life when the mortgage is gone and you own it free and clear.
If you’ve ever rented, you know that a landlord can raise the rent on you. They can’t just raise it out of the blue, but you usually don’t have the same kind of stability as your monthly mortgage payments. If you decide on a fixed-rate mortgage, you’ll have stable payments until the term is over.
Sense of Community
When you own a home as opposed to renting, there is often a higher likelihood of you taking an active interest in the community. In a way, it feels like the neigbourhood belongs to you and the other homeowners, and you work together to keep crime out and keep the properties looking their best. That community pride is there, because the home belongs to you. These are just a few of the reasons many people decide to buy instead of rent. If you have more, feel free to share.