There is a wide array of reasons why buying a home is better and more logical than renting one. According to the U S. National Census, around 65% of all housing units are owned and occupied by owners themselves. While around 29 to 30% of the other housing units are leased out to renters. In an ideal world, all would-be homeowners. The reality is there is only so much space that you can cram people in urban hubs. Instead of buying housing units, most rent because of the convenience their place brings.
However, the pandemic has brought into the spotlight the pitfalls of renting. As more and more people became unemployed, rent relief has pushed every landlord over the edge. Merciless landlords started kicking everyone out in the cold as people struggled to feed their families in a time of crisis. An eviction crisis was coined by the media regarding the recent dislodgments that happened over the lockdown. Out of the 100 million renters living in leasehold agreements, around 30 to 40 million were facing eviction by the third quarter of 2020. It only shows how fragile the whole system is.
As the country moves forward from the recent crisis, you should also look into improving the way you live. Buying your own home is the next big step for you. There are millions of reasons why buying a home is better than renting one.
In many ways, buying your own home is financially freeing. The ability to be able to not worry about paying your landlord is one of the best things your money can buy. Not dedicating and apportioning a certain amount of your salary to something that is never yours is one of the best things that can happen in your life. The money you pay for your rent is essentially money thrown out the window.
This will never be yours again. You don’t get any significant and physical object in return. Locking yourself up with a lease rather than a future property is one of the worse decisions you can make in your life. You better bust out that home mortgage loan calculator and start planning how you can acquire your own personal property.
Stability is one of the many gifts that owning a house can bring you. One of the horrific stories a renter can hear in his lifetime of renting is that an increase is slated upon the renewal of their contract. While this is highly understandable for landlords, this conundrum can bring financial terror upon the wallets of renters.
Rent is usually apportioned per cutoff of one’s salary. Most dedicate 30% of their income to paying rent alone. Raising rent will eat up on the pie that may or may not have been getting larger. Paying for a house, while it may take longer, has a much more structured mode of payment for years that you can plan around.
Asset to Build Wealth
It is said that buying and owning homes is one of the smartest things a person can do with his or her money. Buying a house is akin to acquiring an asset. You finally get to see your money convert to something more concrete. Most landlords are notorious for buying multiple houses to rent out to other people. Owning a house is essentially asset-building.
Once you buy a house, you have the freedom to do whatever you want with it. Options available to you include: renting it out yourself or selling your property for a profit. Owning a house can give you a passive income that you do not even have to rigorously maintain. Both can net you positives if you do it right.
Compared to renting a house, you are guaranteed more freedom to do whatever you want with your property. Subject to certain housing regulations, you are permitted to do whatever you want with it. Whether you want to build a house or a large castle, owning your own land can give you the freedom to choose whatever you want.
Renting an apartment will likely restrict the number of changes you want to do with the property. Some landlords are extremely nitpicky about the changes you make on their property. Landlords are also given wide latitude when it comes to the renters’ deposits. Even a minor crack or damage will give them the power to claim your deposit.
By owning your own home, you can make everything your own. You would not have to worry about any kind of landlord or manager that will scrutinize your every move. Aside from the stability it brings, homeownership can bring you the financial independence you have been aiming for. After fully paying for your own property, you will never have to worry again about missing another due date. You finally get to plant yourself in a place you can call home.