Buying a condo or home is a much better decision than renting. If you have a down payment saved up and you’re currently employed, then you will likely qualify for a mortgage. Buying a home is something that you will want to consider. Being a homeowner comes with a lot of responsibilities but the benefits to owning your own home are significant. Below, you will find 5 simple reasons why you should forget about renting and starting thinking about purchasing something you will own.
Mortgage payments are typically less than rent payments
Most people do not realize the amount of money they are losing by renting a home. Did you know that mortgage payments are typically less money than rent payments when you buy something the same size and quality? The average one bedroom apartment is about $1,000 per month, but of course this differs depending on where you are located. If you were to purchase a small condo that’s about the same size, you would pay significantly less money than $1,000/month. In fact, your mortgage is likely to be closer to $400 – $600 per month. Condos are of course subject to additional fees, but it’s likely to cost you less money than renting. If you can save money on a month to month basis, the benefits to buying over renting are clear.
You can resell the property when you buy
The most significant downside to renting is that you do not own the property. In fact, all of the money you pay on a month to month basis is contributing toward the landlord’s mortgage on the commercial real estate. When you’re ready to move out, you can’t sell the property to get your money back. Every penny you paid toward rent is gone. When you buy a home, your monthly payments are contributing toward the mortgage and when you sell the home, you can get your money back or potentially even make a profit. Buying a home is a smart investment and every dollar you put toward the mortgage can be made back. Owning a home is actually profitable if you renovate the property and you are able to sell it for more than you paid.
You can renovate the property and improve its value
When you own a home, renovations can be done to the property to improve its value. This is a significant benefit when you own a home because the renovation costs will be made back when you sell the property. As a renter, it’s very unlikely that the landlord will allow you to change the property or do any type of renovation. Furthermore, it’s not beneficial to a renter to renovate because all of the costs will be lost when you move out.
You can improve the energy efficiency of the space
Most apartments are not very energy efficient. If you want to save money on your energy bill, owning a home allows you to do that. Double pane windows and better insulation become a possibility when you buy a home. Additionally, you will have the opportunity to install solar panels or purchase wind turbines to truly make the home energy efficient.
You’re able to save money
Someone who owns a home is much more likely to save money than someone that rents. When you own a home, you can put money more money toward the mortgage rather than spending your excess cash on fine dining and nights on the town. Renters are much more likely to spend their money recklessly than someone who understands responsibility and has payments on their home to attend to.