Buying a home is one of the most important steps we can take in life. That is why many are scared of such a big step and then decide to rent instead and prolong making that decision. Although at first glance it seems that rent has many advantages, when analyzed in detail, you realize that both long term and short term are much better to be a home owner than a tenant.
Don’t be demoralized by the large initial costs that include home renovations and many other things, not just down payment. Once you pay for it all, it will become clear to you that you have made the right decision. In addition to being the realization of your American Dream, it will also bring you many other benefits. If you are still hesitant and have a second thought, read about these advantages that we learned about from the real estate experts at AK Premier Real Estate Services in Raleigh North Carolina. In it we will give you many reasons why it is better to buy a house and how it will positively change your life from the day one.
1. It is cheaper
Although you are now wondering where we got the idea that it is cheaper to buy than rent, you should think again. Of course you will spend incomparably more money in the beginning on the purchase, taxes, renovation and many other things, but in no way can it be considered more expensive. It is an investment of money, not spending, unlike renting. When you rent, you throw money in the air, because when you leave that property, you have nothing left of all that you have spent so far. And when you invest and become a home owner you have something that does not lose value. You can always sell and return all the money invested, and even make money. So you can look at it as if you lived somewhere for free. While in the second case you give money every month, you pay the bills and in the end you have nothing in return.
2. It is yours
One of the primary reasons why you buy a property is to know that it is yours. A completely different experience of life is when you know that something is yours and that no one can get you out of there. You can do whatever you want, decorate however you want and everything else. It is necessary to have complete freedom where we live so that we can properly rest from work and other stresses imposed on us by everyday life. You have the choice to customize it however you want. When you are a tenant, you have to ask for the owner’s permission for every little thing, and it also not smart to invest into decorating of something that you don’t own. Why would you pay for painting, landscaping and many other things when you will end up going away at some point. You can leave very calm knowing the fact that no one can increase your rent, so you can constantly live in stress whether you will be able to pay next month. Evictions are not uncommon at all, especially in big cities, but that won’t concern you will your are enjoying your own space.
3. You will have to save
Very often we spend money without paying proper attention to it and so we fail to save anything even though we have a satisfactory income. This is especially the case if you are a tenant and then you are not considering any long term investment but just living from one month to the next one. When you decide to buy a house, you will have to start saving, so it will practically force you to start saving for down payment. You will be much more financially stable because you will learn how to save and how to better manage your money. Also, once you get used to saving, as soon as you cover all the costs of buying a property, you will continue to save for some other things like retirement.
4. A second mortgage is available to you
While of course it is not good to take out a second mortgage, there are still times in life when you have to do it to cover some very important expenses. When you are a home owner you will always have the certitude that if black times come, you will be able to take out another mortgage. This works by taking a loan from equity that has been accumulated, so you practically have the option to take two loans. Of course you should approach this very carefully because now your house is serving as collateral and you can lose it, but it is important to know that you have this option and not that you have to turn to lenders where interest rates are too high.
Although the landlord should not come to you before contacting you and announcing his arrival, it is after all to his property and will certainly often violate your privacy. And the constant invasion of privacy will make you not feel comfortable where you live. When you live in your house, then no one can violate your privacy and you set all the rules. Also, it is possible that you will not be allowed to have pets or that you will have to follow certain rules that will again negatively affect your comfort there.
6. You can be a landlord
Many people are reluctant to invest money in buying a house because they are not sure how long they will live in that city, for example. But this is not something that should deter you from buying, because even if you have to move out, you still have that property that you can rent out. That way you will increase your income.
7. You can find great bargain
If you have money and you are not in a hurry, you will always be able to find a great bargain. Houses for sale are regularly advertised below the real market price, because the owner has to sell as soon as possible and then reduce the price for that reason. You can save tens of thousands of dollars that way. While when you are looking for a house to rent, you will never get a cheaper price, because the demand is great and the landlord will always find what he wants.
Although there are many more benefits of buying a home versus renting one, it all comes down to whether or not you have enough money saved for a down payment and your credit can help you get a loan that has an interest rate that won’t have you overpaying for a house that you can’t afford, so choose wisely before you do anything.