The dream for anyone living in a rental property, is to become a home-owner. Renting feels like wasted money. It feels like you’re paying for someone else’s mortgage, and it’s hardly any cheaper than a mortgage would be. This is the primary reason people choose to buy a home instead of renting. But it’s not the only attraction. Becoming a homeowner can completely transform your life in so many ways.
There are so many benefits to owning your own home than renting.
1. Freedom
When you own your own home, you have the freedom to do whatever you like. You don’t have to worry about your landlord agreeing to your ideas, or saying no. You don’t have to ask anyone else. If you want to make modifications to your home, you can. This is something you can’t do in a rental property. Even if you are allowed to decorate, you still can’t make the property your own, because it isn’t yours. Owning your own property gives you complete freedom.
2. Security
By owning your own home, you have a security that renters don’t have. First, you know you aren’t going to get evicted. As long as you keep up the payments on your property, nobody will ask you to leave. Moreover, you know exactly what you are going to be paying each month, whereas renters have the continual worry of their rent increasing.
3. Money saver
Owning your own home can actually save you money. In some cases paying a mortgage can be cheaper than paying rent, especially if you are able to put down a large deposit and if you buy at a time when interest rates are low. And with fixed mortgage rates, you can control how much your property costs you, you aren’t at the mercy of your landlord.
4. Investment
When you buy a home, you are making an investment in your future. As you own your property and make your mortgage payments, you start to accrue equity in the property. Which means, if you were to ever re-sell, you could actually make money. In fact, your home can become your savings and pension scheme, it can be all you need for the later years of your life.
5. Reduced living costs
Once you own the property, you will find your living costs are massively reduced. Rent or mortgage (whichever you pay) takes up a large portion of your monthly expenditures. Once you have finished paying for your house, all you need to pay for thereafter are the things you need to use the home, such as utility bills, as well as any repairs or modifications.
6. You have something to leave behind
After you are gone, you will want to know that the people you left behind are well looked after. Owning a property can help to give you this peace of mind as when you do eventually pass away, the home will be passed onto your relatives. It is important to consider here that a will is crucial, especially if you want the property to go to one person in particular (or there is a family member you don’t want to inherit the home). To be sure the right people get the property after you’re gone, make sure you have an up-to-date will.
Things to consider
Although there are lots of benefits to owning your own home, there are also some drawbacks and it is important to take these into consideration before you begin the home buying process.
- You need to have a minimum of 5% deposit and this is usually the hurdle that prevents people from being able to get on the property ladder.
- As well as your monthly mortgage charges, there are many other fees associated with buying a home. These fees can be the difference between you comfortably affording to buy your home, and not being able to. Do your research and understand the fees involved with buying a property.
- If you start the process of buying a home and you (or someone else in the chain) wants to pull out before completion, you could end up losing any money you’ve invested.
- The process of buying a home takes much longer than renting, so if you need a home quickly, renting might be the better option.
- There’s no guarantee your house price will increase, or that you’ll ever make a profit from it.
- You’re responsible for the property and any repairs it needs. So if you need a new boiler, the cost to replace it will fall to you, and you won’t have a landlord to go back to.
After you’ve done your research, if you find you can afford to buy your own home, then we encourage you to do so. We know it will completely transform your life. But, we do advise you be sure and do your research first, because otherwise you could end up losing money.
