August 10, 2021
If owning your own home is high on your list of priorities, now might be the right time to take the plunge. After all, every rent payment represents hundreds or thousands of dollars that could be dedicated to buying your little piece of paradise. Here are ten benefits of owning your own home instead of renting from someone else.
1. Pay Your Mortgage Instead of Your Landlord’s
When you rent, you are essentially paying a mortgage payment already -- for the property owner. In addition, you’ll generally pay a premium for renting to cover the costs of insurance, property taxes, property management, and other services. Instead, by choosing to own your home you can put that cash toward building equity and improving your net worth month after month.
2. Control Your Own Space
Hate that paint color? Change it. Ugly backyard? Plant a garden. When you are a homeowner, you call the shots on the look and feel of your home. When you’re a renter, even the smallest nail holes may result in a damage report when you move out. And then a portion of your deposit is held back by the landlord.
3. Build Personal and Generational Wealth
For most people, a home is the largest purchase they’ll make in their lifetime and the most significant they own. That means that you have access to the value of home a value that can increase over time with proper upkeep and standard market appreciation. In addition, the tax advantages of homeownership accrue to your heirs who can inherit your home at its stepped-up value, then choose to live there, sell it, or hold it as an investment property of their own.
4. Enjoy More Home Options
When you’re looking for a rental, you may be limited in the types of property you can find and qualify for in your local market. By contrast, your home purchase may offer you far more flexibility, including a variety of architectural styles, home sizes, and features.
5. Put Down Roots for Yourself and Your Family
For various reasons, you may be far more likely to move more frequently as a renter. This can be due to several factors, including poor property management, rent hikes, or a property owner’s decision to sell the home you’re renting. By contrast there’s more incentive to stay put and put down roots in your community as a buyer.
6. Enjoy the Emotional Benefits of Ownership
Many studies link homeownership with greater satisfaction and happiness, and it’s easy to see why. The ability to control your environment and the pride that comes with tending to your little piece of earth can profoundly affect your well being. In addition, there’s a sense of accomplishment that comes with homeownership since many people view it as a lifetime goal.
“New Survey Shows Generation Z Ambitious Yet Realistic About Homeownership.” Freddie Mac Consumer Research. 21 Nov 2019.
7. Experience Greater Financial Stability
When you’re renting, every lease renewal may bring with it a higher rent amount for the following year. Switching from one rental to another may involve thousands of dollars in deposits, limiting your options still further. By contrast, a fixed-rate mortgage provides a consistent payment schedule that lasts throughout the life of your loan.
8. Experience Greater Housing Security
If you’ve ever had a landlord notify you that your lease won’t be renewed or that they’ve decided to sell the property to a new owner, you know how scary it can be. When you own, however, you make the decisions about where you’ll live and for how long, including whether or not it’s time to upgrade to a larger space or relocate to a new area.
9. Be Part of the Community
As a homeowner, you have a financial investment in your community, with more of a say in what happens there. You may a member of the homeowner or condo association or the co-op board. As a property taxpayer, you have a voice at the city council or county commission. In addition, you’re perceived as a permanent resident by your neighbors rather than a temporary guest of your landlord.
If you’d like to create additional streams of income or get a little help paying the mortgage each month, you’ll be able to add investment potential to your home at will. Convert an unused basement or garage apartment into a rental property, add a tiny home or take in a renter to fill that spare room. Relocating for work? Hold onto your home and rent it out to offset your expenses.
To learn more about PenFed loans or what loan is right for you:
● Call 866-386-7254.
● Visit Get my Rate.
● Visit the Mortgage Center.