Maybe You Should Own Instead of Rent
Home ownership provides a sense of stability and security.
A home allows long-term investments in a property that appreciates over time and increases their net worth as equity builds over time. Also, the interest paid on a mortgage and other homeowner expenditures are tax deductible.
We have some considerations for those who are on the fence between whether to buy or rent.
The Opportunity Cost of Rent
A rent payment is an expense that can rarely be recouped. You do not build equity when you rent a home, you’re probably paying your landlord’s monthly payments. The purchase of a home is a major investment, and initially it can feel expensive at first. The cost of renting and buying a house can often be comparable in many cases. It is obviously much better to pay off a property you own than to pay off someone else's. You will also have more control over your shelter expense. When you are under a lease, a landlord may choose to raise prices at renewal.
A good way to build wealth for the rest of your life is to own your own home. It is more than just having an address to live in that makes a house a valuable asset. Property, when purchase and managed well, appreciates in value over time. Your wealth cannot be built more consistently with any other asset. Whenever you rent, you are building the wealth of your landlord instead of your own.
Put Your Stamp On It
What needs to be updated or refreshed in your bathroom or kitchen? If you own the house, you decide what to do with it.
You can paint the walls or remodel your home as much as you want when you own a home. Many people find that the flexibility provided by owning a home to be seriously attractive. Renting comes with extra fees, lease contracts, terms, and other costs associated with its operation. If you own your home, you have full control over it and can do what you want with it.
Stability
Ownership of a home provides stability, privacy, and peace without compare, according to many homeowners. When you buy a home, you give your children a place to call their own, the opportunity to attend school in a good neighborhood, and friends who live nearby.
Buying a home has a number of distinct advantages over renting, as you can see. It saves you money on rent and gives you the stability you need to build a family as you build a life together. In addition to these benefits, buying a home empowers you and your family and can help you build a substantial net worth.
Owning your own home is a wonderful milestone and if that’s a goal you want to achieve a coach at Lionhood Financial can help with that. We will ensure that you are in the best position to make more of your money!