The decision to buy or rent is a big one and different for each individual. Some people are ready for it, ready to settle in one place for a while. Others know their career plans or family status will change and aren’t ready yet. In such cases where you would not be buying long term, it may be better to rent.
However, there are numerous reasons to buy a home if you are ready. Here are a few:
› Fixed Payments:
Assuming a fixed loan, home buyers can rely on a stable house payment amount. Something they can budget around confidently. Renters may be faced with rent increases each year. Sometimes this means the rented apartment is no longer affordable. Which means searching for a new place, applying, packing up and moving, again. No fun for most people…
› Build your equity, not the landlord’s:
When you pay a mortgage, you are partially paying off your home – or building equity. The money paid to the landlord is money you will not see again!
› Social Benefits:
There are also many reasons the National Association of Realtors gives on the social benefits of homeownership. Some of them include
- higher test scores for children
- higher rate of graduation
- increased charitable activity
- Paint the walls, change the carpet, have a garden, have a pet!