Renting a home is a fine thing to do, and in some cases, you can get a lot more house for your money than if you bought a similar house in the same area. Buying, however, gives you more security. For those who have a choice between buying and renting, it can be a difficult decision, but buying should always be the route you go down if you do have that choice because there are many benefits to doing so.
The biggest and most obvious benefit of owning a property rather than renting one is that it is yours to do what you want with. You can decorate it however you like, and you will not need to ask anyone’s permission (unless, of course, you’re building an extension when you will need permission from your local authority). You can paint the walls any color you like; you can use any light fitting, you can put in a brand new kitchen and bathroom should you wish. It’s all down to you.
Something that you can do to truly take advantage of the fact that you can make all the changes you want to your home is to make it more energy efficient. It could involve putting in new or improved insulation, adding solar panels, or replacing drafty windows.
It’s An Investment
Buying a property is definitely an investment. It may be long-term, but once that mortgage is paid off, the entire value of the property is yours when you sell it. Even if you sell before you pay the entire mortgage, ideally there will have been some growth in the housing market meaning that the property is worth more than you paid for it. It doesn’t always happen, though, so be aware that property prices can go down.
If you like the idea of investing in property but don’t want to buy one to live in, there are other options. You could buy a house to rent out and become a landlord, or you could try Rich Uncles REIT (Real Estate Investment Trust) where you buy shares in a company that owns the property.
When you are a homeowner, you can deduct your mortgage interest as well as any property taxes when you file your tax return. When all the calculations are done, you might find, thanks to these tax savings, your mortgage payments turn out to be the same cost as renting would be – they might even be less.
It is inevitable that, over time (and maybe every year), your rent payments will rise. The only way this won’t be happening is if you live in a rent-controlled building, but these are becoming much less available. With a good fixed rate mortgage deal you can rely on your mortgage payments staying the same. A fixed rate means that the interest rate doesn’t change and since this makes up most of your mortgage payment’s total, you can be sure of what you are paying for two, three, five years or even longer.