Why you should skip renting and become a homeowner


As someone coming from the environment where owning a home, an apartment, a house and potentially even a weekend cottage is a very common thing, renting always seemed like only a short term solution for me. Like something you do during your student years or while you're short term staying in another place or the country.

Of course it's a long throw, especially with expensive housing and somebody without regular job or income, but as you need to put a certain amount in every month anyway, wouldn't it be great if the place is then slowly becoming yours!? They say a person’s home is their castle, but what good is a castle if you’re not the reigning king or queen? Choosing whether to rent or invest your money into becoming a homeowner is a big decision with lots of factors to consider. Here are some reasons Why You Should Skip Renting and Become a Homeowner.

You save more money in the long run


First things first: it’s important to note that every real estate market is different. Someone living in Missouri might find Kansas City houses for sale less expensive than St. Louis apartments for rent, making the latter look like a better deal than the former.
Buying your own place in London seems out of reach for majority, not just young people, and home sharing is absolutely common even among middle-aged workers. While moving up north, in Manchester, for example, you could get a decent home of your own from 50.000 £.
Wherever you go, though, one thing never changes: mortgage payments eventually end, but rent payments never do. When your mortgage is finally paid off, your house belongs to you and only you. Rental properties, meanwhile, always belong to their landlords, not their occupants. Which brings us to…

A mortgage is predictable, rent isn’t


When you sign on for a mortgage, you and your bank are both entering into a long-term agreement with concrete terms. They’ll loan you a certain amount of money in order for you to secure your dream home, and in return you’ll make payments of a certain amount at regular, agreed-upon intervals in order to pay that loan off, plus interest. Both you and the bank are bound by these terms. Your mortgage will never go up without your consent.
Renting, on the other hand, is always a short-term agreement. That means a landlord is under no obligation to refrain from changing the terms of your lease whenever it comes up for renewal. In fact, a landlord is under no obligation to renew your lease at all. They’re the ones in control and you are subject to their whims. Speaking of which…

Ownership means independence


Not just financial independence, either. Owning doesn’t just mean not having to worry about losing your home because the landlord decided to turn the building into a parking lot. It also means that you get to be the one deciding what that building does or doesn’t become.
Want to paint your living room pink with yellow polka dots? That’s your call. Want to tear out your bathtub and replace it with a giant heart-shaped indoor Jacuzzi? Go for it. If you were renting, you would have to get permission from your landlord to do so much as put a nail in the wall to hang a picture frame. That, or risk losing your security deposit. And since we’re on the subject of money…

A house isn’t just a home, it’s income


Let’s go back to the example from earlier. Remember how, in that hypothetical scenario, London apartments were so expensive? That may have gotten you thinking, “I wish I were a landlord there. They must be making a killing.” Well, guess what: when you own your home, you can make a killing, too.
Owning property is a great way of generating passive income, even while you’re still living there. Rent out a spare room or turn the whole house into a duplex, get a great long term roomie, or do the Airbnb sort of short term let, with a chance of meeting a lot of interesting people from around the globe. You could find yourself quickly making back every penny you spent on your mortgage, and a nice passive income afterwards.


   

Comments

  1. Great tips but sadly many people can not afford to buy a home. I feel like this is a privilege for the very few. I think the American dream of owning a home is just that --a dream. Not sure about other countries but I am guessing it is similar.

    Allie of
    www.allienyc.com

    ReplyDelete
  2. I think its always better to buy a home. It's an investment x

    Laura
    https://www.beautywithlala.com/

    ReplyDelete
  3. Buying a home is a great investment. You're paying towards something that is yours. I rather own my own place but it can get expensive out here when a property tax is like 14k a year on its own! Thanks for sharing all of this!

    Nancy ♥ exquisitely.me

    ReplyDelete
  4. i completely agree with you. I am so tired of paying a rent to someone else. But still getting a house may be a little complicated!!

    Cate ☾ 35mm in Style | Photography + Blogging

    ReplyDelete
  5. Yes I agree that buying a house is an investment, but there are those that can't afford to buy.

    xoxo
    Lovely
    www.mynameislovely.com

    ReplyDelete
  6. I completely agree with you. My husband and I decided to get a morgage loan from the bank 3 years ago in order to build our home and it was worth it even with a high rate. Renting long term is throwing money down the drain. We do live in a rented apartmant right now because I found work elsewhere but once my contract is over we will go back to our home. We can always sell it and pay off the morgage and still have money left.

    ReplyDelete
  7. I get your points. I had to convince my hubbie when we got married that we should own versus rent. There are downsides to owning as well but overall it's nice to call a place home and make it your own.

    xoxo,
    Christine
    http://dailykongfidence.com/

    ReplyDelete
  8. Some really good points. Sadly this isn't an option for many people, especially where I live. Homes are so expensive and the more "affordable" kind get swept up by developers

    Sxx
    daringcoco.com

    ReplyDelete
  9. I would love to own a home someday. Something that is worth working for.

    ReplyDelete
  10. These are all good suggestions, I totally agree with you! :)

    https://julesonthemoon.com/

    ReplyDelete
  11. I absolutely agree with you. After married and finishing study buying a flat was my and my husband priority. It gave us independence. I think that renting a flat, except the study time or short-term stay in other city or country, means wasting money.

    Have a wonderful day!


    jointyicroissanty

    ReplyDelete

Post a Comment

Popular Posts