Purchasing a home is a significant accomplishment. While it may appear difficult at times, the numerous advantages of owning your own home make it all worthwhile.
Renting may appear to be the best option in the short term, but here are five good reasons why owning your own home can create real value for you over time.
- You will amass equity.
Your equity is the amount of money you own in relation to the value of the property you own. It increases as the market value of your home rises (or when you make extra payments on your mortgage). Learn how to calculate your equity if you already own a home.
When you own a home, you may be able to leverage your equity and access it by redrawing your loan or borrowing on top of it.
- You’ll have financial security.
Your family’s stability while renting is dependent on the decisions of a landlord, who may suddenly decide they no longer want to rent out their property. Moving is expensive, inconvenient, and can be emotionally draining, especially if you have to relocate unexpectedly. When you own your own home, you can rest easy knowing that you are in charge. That is invaluable.
- You can design your ideal home.
Landlords are rarely happy for tenants to renovate their property, even if you believe you will improve it. When you own your own home, you have complete creative freedom – you can renovate the bathroom in a jungle theme or paint the walls in super bright colors without fear of being judged. Home improvements generally increase the value of a property, so if it is your home, every cedi that your home has gained in value (due to your hard work) will be money in your pocket when you sell!
- You have more cost control.
When you rent, your landlord may decide to raise your rent, leaving you with little choice but to accept it or face additional moving expenses. While home ownership comes with a variety of expenses, such as mortgage payments and interest rates, these are unlikely to rise significantly unexpectedly.
- Your mortgage payments are a way for you to save money.
While it may not always seem like it, your mortgage payments are a way for you to save money. Most repayments include both principal and interest, which means you’re putting money toward owning a larger portion of your home. While renting appears to be less expensive, you will not receive any of that value back in the future.
There are numerous factors to consider when deciding whether to continue renting or to purchase a home. Speaking with a financial adviser can be a great way to figure out the best way to meet your financial objectives. If you decide that purchasing a home is the best option for you, please contact McDuncan Properties at 0506757267 and we will gladly assist you to consider your options.