You’ve probably had friends and family encouraging you to buy your first home. However, you may still wonder if buying a home is the right decision for you. Having reservations is normal, but the more you know about owning a home, the less overwhelming the idea will seem. If you are considering home ownership, here are four good reasons why you should own instead of rent.
Pride of ownership
Pride of ownership is the number one reason why people own their home. It means you can decorate as you desire, install fixtures like closet organisers or window coverings, and make repairs when they are needed instead of when someone else gets to them. You never have to worry about someone having access to your home and personal belongings and you are in control of things like heat, air conditioning and water use. Regardless of the type of home you choose, home ownership gives you and your family a sense of stability and security. It’s an investment in your future.
Although real estate moves in cycles, over the years real estate has consistently appreciated. A well-maintained home is an important investment that can produce immense rewards over time.
Mortgage reduction builds equity
Mortgage payments often cover three expenses: principal, interest and taxes. The portion of your payment that is applied to the principal reduces your obligation to the lender, putting you that much closer to being debt free. Amortization works by slightly increasing the principal portion of your payment every month and slightly decreasing the amount of interest you are paying every month. The amount of principal you pay off is your equity. Building equity in your home can be used to secure other loans and proves you are financially responsible.
Home owners are good neighbours
Home owners enjoy a sense of belonging, which often translates into better community security, when people who know and care for each other are all looking out for one another.