As you start to take control of your finances, you may wonder whether you should continue to rent or look for a home or condo to purchase and own. For some people, a mortgage seems risky and a big commitment in their lives. For others, it is a welcomed opportunity. If you are considering buying a home, here is why it can be a good investment:
You can get potentially get something back. When you rent, you write a check to your landlord every month and the money is just gone. You could live in the same place for years and walk away with nothing. However, a mortgage is an investment in the home. When you go to sell home you will gain the equity between what you sell it for and what you owe on it.
Wealth accumulation for heirs. In the event that you pass away or move, you can leave the home to someone in your family. They inherit the home and can keep making payments on it until they fully own it.
You can do what you want with the property. Rental properties come with strings attached. Even if you are able to make aesthetic modifications like changing the paint color, you can’t make major design decisions like remodeling the kitchen or tearing down a wall. Owning a home gives you this control and allows you to make changes that increase the resale value.
You may end up paying less. Rent continues to skyrocket in many places. However, you could pay less on your mortgage than you would if you were renting.
Knowing the benefits of paying a mortgage versus rent can help you plan your way to a successful financial future.