Choosing a main course in a restaurant may be a stressful task and a bit costlier too. So, do you think that a chicken dish would be a safer choice or the more expensive and tasty-looking steak?
When making such decisions in life, there are chances that you’ll end up with a side dish of regret if you make the wrong decision.
Similar is the case when it comes to buying a house or moving to a rented one. There may be a few friends of yours who are taking the leap from renting to buying, but you’re just not sure whether it’s the time for you to take the grown-up responsibility of home ownership.
Here’s the solution to make the right choice between buying a home or looking for a rented one. To help you out, we’ve outlined 6 top areas you should really consider as a potential buyer.
1. Buying a House is Cheaper
You may be wondering that you’re not ready to take the responsibility of monthly home loan installments, while you already are paying more in rent every month. Home loans are getting cheaper and hence the monthly installments are lower than ever before. According to the experts, your mortgage payment could be as little as 56% of your monthly rent.
On the other hands, the shortage of housing stock has lead to increased monthly rents. The people are fighting for a limited amount of rental properties. While the shortage of housing stock can be great for landlords but it is simply not so good for tenants.
2. Your Own Property
The biggest thing when buying your own home instead of moving to a rented house is that you actually own the property. You pay the similar amount monthly as mortgage, that may be lower than the monthly rent, but you are the owner of the house where you are living with your loved ones.
With your own house, you don’t need to call your landlord if you want to put a picture hook on the wall or when there is a need for some changes in the wall color. If you want to cover all your walls with your favorite pictures, that’s your prerogative. Owning your house means that you can make your home look the way you’ve always wanted.
3. You Save on Taxes
The greatest benefit of buying a home is that you save a lot on the annual taxes, which is most homeowners unaware of. Apply for the home loans and you get a discount on your annual share of the taxes you pay that turns out to be a benefit.
4. Savings for Retirement
There may be ups and downs in the mortgage rates, but they are generally quite reasonable and over time you will pay off that mortgage. Over the time you earn and keep paying your mortgage installments, you get retired and need not look for a cheaper rental house that is in your budget as you own the home. The mortgage payments can provide you with a nice nest egg for your retirement.
5. You Become Part of a Community
Living in your own home means you spend a lot of time in the community as you are in the bricks and mortar of your house. This turns out to be a security that you belong to the community and you know you’re going to live here for the foreseeable future so you can start putting down roots. Buying a house means you need not to be afraid to be a part of the associations that may be beneficial for you or your family like you can join the local GAA club or get involved with the local parent-teacher association.
6. Improving Your Credit
The most important thing for a first time home buyer is that investing in your own property means that you are improving your credit. All you have to do is to pay your monthly mortgage installments timely. Your repayment history is checked by the other lenders when you apply for another loan or credit card. If you have a mortgage and consistently pay your repayments on time, lenders will generally look on your credit applications more favorably.