When it comes to owning a home or renting, there is always so much which is debated about. Both sides have valid reasons to which is better, so it can get a bit confusing.
Renting is an agreement where a payment is made to the owner of the house (landlord) to reside for an agreed period. Renting is often seen as a waste of money but that’s not so. You would always need a place to live. Renting offers flexibility and a predictable monthly expense. The downside of renting a home, however, is sometimes you are faced with unpredictable rent increases each time your lease is up for renewal. Therefore, buying a home is always advisable.
Buying a home is the biggest financial decision many people make, and it comes with a lot of peace of mind and security. It makes you feel good as you have a space that is truly yours. You do not have to be plagued with the worry of waking up to an eviction notice or worry about moving so much. Its benefits are endless. Below are a few benefits of owning your own home:
- Home ownership is a better long-term investment: When it comes to renting a property, you make the landlord richer by paying monthly or yearly rents. Home ownership, on the other hand, is an important asset which would always appreciate over time. You can choose to invest in buying a home today and sell it in the next 10 years and get massive returns on your investments. If you rent a property for 10 years, however, you won’t ever get any of your monthly rent payments back.
The value of homes has risen and are expected to continue rising in the future, making home ownership a profitable long-term investment.
- Gain equity as property values continue to rise: Equity is the difference between the market value of your home and the amount you owe the lender who holds the mortgage. In simpler terms, it’s the amount of money you’d receive after paying off the mortgage if you were to sell the home. Increasing property values mean that the money you spend on your home will provide significant returns in the long run.
- Rents continue to increase: The cost of renting has and would continue to increase over time so if you rent you would have to deal with an occasional price increase. For example, you could rent a house for #450,00 now and in the next couple of years or months, the rent would go up to #500,000 or even #600,000. If you own a home and decide to pay #450,000 in mortgage the price of your home will remain the same.
- Owning a home comes with security than renting: With owning a home you have a feeling of security. Renting can be quite an uncomfortable experience and can become financially and emotionally draining. Renting can mean that you never really know where you’ll be living next as you can be evicted from your apartment by an unhappy landlord or one who wants to sell his property.
- Owning a home comes with control: The beauty about owning your home is you call the shots, and you are the captain of your boat. With renting, you can’t really alter your home to suit your needs as the house does not belong to you. There must be a constant need to seek the permission of the landlord before making major adjustments. Renters who constantly have a need to change or modify their home would also have to deal with changing residences which would bore a hole in your pocket.
Home ownership means you can make improvements to your home, and home improvements usually lead to increased home value, both financially and in daily home life.
- Home ownership comes with Sustainability: In relation to your financial gains, owning a home can help create a sustainable future. As a long-term property renter, there would be a lack of sustainability because an integral portion of your disposable income is channeled towards housing expenses which are not stable. As a homeowner, you have more disposable income, unlike the tenant who must pay for rent from his disposable income monthly or annually.