You really should own a home instead of renting one!
Whether you are moving out for the first time or you are ready for a change, you may be wondering if it would be better to buy or rent your next home. This is often a personal decision, though there are benefits of both.
Unsure if you should buy your next home? Here are some of the benefits that you should consider.
Your home will be a good investment. Though most people don’t really think of homes as an investment (like money in the bank), the truth is that your home will grow in value over the years. If you sell it in a few years, you should be able to make some money when you sell it. In fact, if you stay for ten to fifteen years, you should really make some money on it when you do sell it.
As you pay off your mortgage, you are building builds equity. Equity is what you own “free and clear.” So, if your home is worth three hundred thousand and your mortgage is two hundred thousand, you have an equity of one hundred thousand dollars. Even better, as your property value goes up, the amount of equity you have in your home does too!
So what does this really mean? Equity is really helpful if you need a loan for anything in the future. Home-equity loans are usually a lot cheaper than some of the other loan options that you may be looking at.
You have a guaranteed place to live. When you rent, you are at the mercy of your landlord. He or she can sell the place that you are living in, so you might have to move without much warning.
Your landlord can also raise your rent without warning. When you own your own home, your mortgage is going to be the same every month, unless you have an adjustable mortgage. Your landlord could increase your rent regularly, until you are no longer able to afford it.
Owning a home and paying for it will help your credit score. Your credit score is used to show others how responsible you are with your money. If you pay such a large amount (your mortgage) regularly and on time, your credit score will increase. This will help you in the future if you need to take out a loan for something else.
Though you may be leery about buying a home, you should think of it as an investment, one that should pay off over time. Even if you only stay a few years, you should be able to make some money on it. Even better, you also can build equity as you pay off your home. Paying your mortgage is also good for your credit score. Between your equity and credit score, you should be able to get a good loan at a decent rate, which will only help you out financially.
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