Although some people find renting
a more convenient option, real estate experts still recommend home ownership
because of its many advantages. Consider the benefits and risks of home buying
vis-à-vis renting. Especially when you think about your retirement years, you
will realize that investing in a home will be the smartest decision you will
ever make in your life.
Several studies show that having
your own home can indeed be beneficial in various ways such as lower chances of
teenage pregnancy, better education for your children, and more annual income
for your children. But these are just some of the advantages of owning a home.
Here are more reasons why you should buy yours now:
1. Housing expenses are more stable with mortgage payments than rental payments.
When you buy a house, your mortgage payments are most likely to remain as they are throughout the home loan period. In contrast, rental fees usually increase each year. Especially during inflation, when prices of goods go up, people who rent are bound to lose more money than homeowners.
1. Housing expenses are more stable with mortgage payments than rental payments.
When you buy a house, your mortgage payments are most likely to remain as they are throughout the home loan period. In contrast, rental fees usually increase each year. Especially during inflation, when prices of goods go up, people who rent are bound to lose more money than homeowners.
2. You get large tax savings. Since mortgage payments consist mostly of property taxes and interests in the first few years, you can expect huge savings when you deduct these fees from your local income and national income taxes-that is, if you decide to purchase your own home.
3. Home ownership allows you to consolidate your other debts. You can do so if you need to refinance your mortgage loan and get out of debt faster. The interest on your debt consolidation can be deducted from your tax as well. You won't get this benefit from renting an apartment, house, or condo unit.
4. You can build equity in your own home. When you rent, the money you pay monthly goes only to your landlord. But when you buy a home, your mortgage payments become your real estate investment. How does it happen? Generally, the value of properties increases over time. And when your property gets more value, you can earn money by selling it. Paying your mortgage loans is like investing your money for future use such as for your retirement fund or for the education of your children.
5. The house is yours! Because you own the house, you have full control over everything that concerns it: the interior design, colour of the walls, the number of guests you can accommodate, gardening and landscape design, among many others. You can have as many pets as you want. You won't need to ask permission from the landlord about changing the look or remodelling the house. No one will force you out of your house or engage you in a violent altercation if you simply want to change the kitchen wall's colour from white to neon green.
Remember, a home is the single biggest purchase that you might make in your life. Before you get a home, you have to know the responsibilities that go with it. The common risks involved in buying a real estate property include decreased value of the home, foreclosure, and increased expenses of maintenance and/or renovation. Thus, weigh all the benefits and risks to be able to arrive at a wise decision.
Author Peter Jordan is a realtor
with Prudential NJ Properties in Westfield
New Jersey
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