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Should You Stop Renting and Buy Your First Home?

Should You Stop Renting and Buy Your First Home?

posted in Mortgage News

While the answer to this question may well rest upon a set of unique factors, specific to every individual, there are still some basic pros and cons to both that are worth considering, irrespective of your circumstances. And, if you’re a first-time renter or buyer, it can be helpful to get a better understanding of the advantages and disadvantages that both bring, so you can make a more informed decision.

Let’s take a look at why renting might not be the best choice:

You don’t get to build any equity

While you do of course get a roof over your head while you rent, you’re essentially paying someone else for that privilege, so you have zero opportunity to build equity and turn your home into an asset.

You could be evicted at any time

While a good landlord will give you plenty of notice should they want to take back the property for any reason, it still means that you’ll have no choice but to move out as instructed, or legal action could be taken against you.

Lease agreements are limiting

Because you’re a tenant, you’re restricted to what you can and can’t do to the property, and even if something goes wrong and needs to be repaired, the onus is on you to prove that you didn’t cause the problem through negligence, hence problems can take a long time to get fixed.

Compare the above issues you face when renting, to the positives that buying your own home can bring, and provided you have the funds to do so, buying your own home seems like a bit of a no-brainer.

Let’s take a closer look at the advantages of buying your own home:

You feel more settled

Being a renter can make the whole process of simply living, feel like a transient, unstable affair. The property doesn’t belong to you, so you could be asked to leave at any time and you can’t do the things with it, that you might if you owned it. Owning your own home can give you increased stability and a sense of being settled.

There are tax benefits to be had

Once you become a homeowner, you’re able to deduct your mortgage interest payments and begin to build equity as you pay off your mortgage loan.

You can do whatever you like!

With owning your own home, comes the freedom to redecorate, renovate or remodel it as you wish, and if you want to keep 10 dogs and 5 cats, who’s going to tell you that you can’t?! Renting can be very limiting, but buying a property enables you to live as you want, in a home that suits your every need.

It’s a long-term investment

Many people choose to buy a property and rent it out to provide them with an income, and if you purchase wisely, you can cover your mortgage payments at the very least. Should the property increase in value, you could also choose to sell it on for a profit.

While the state of the real estate market, your long-term plans and goals, and your finances, all play a significant role in your decision to rent or buy, there can be no denying that buying your own home, brings a set of advantages that renting simply never will.

 

Mortgage News

02 dFeb, 2022

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