Hi lovelies,
If you’re unsure whether to buy or rent a property, then you’ve come to the right place. This discussion provides the main benefits of home-ownership.
Rent Out a Suite
If your property is licensed for a suite, then you have the option to rent it out and bring in additional income. That is if you’re the buyer.
A renter, though, is the person forking out the money without having real estate to call their own. That leads to the next benefit of ownership...
Pay Yourself Rather than Someone Else
Instead of paying rent every month to a landlord, why not pay yourself? A home is a great investment, and it can actually be cheaper than renting over time if you save effectively and buy within your budget.
To help you determine the mortgage repayment costs after the initial purchase, use a mortgage calculator. The repayment amount is based on the amount borrowed from the bank and interest charged on that home loan.
While you pay mainly interest over the early years of the mortgage, over time, you begin to pay off the capital, and that’s great for paying down the mortgage. Plus, you’ll always know how much you have to pay a month, while you don’t get that stability with renting as the landlord could always increase the monthly rent!
Make it Exactly How You Want It
It’s yours, and you can design it exactly how you want to. While you can usually hang your own paintings up and use your furniture in a rental, there are limits to the changes.
For example, renters cannot typically tear down a wall for a renovation. Sometimes you cannot paint the wall another colour either, at least not without the landlord’s approval beforehand.
When it’s your home, on the other hand, you can create the exact space you want, including switching out the existing appliances to new ones to changing the lights in the kitchen to eco-friendly LEDs.
Build Up Credit
Another major benefit of owning a home is a positive impact on your credit rating. That’s because longer credit accounts can lead to a better credit score.
Paying down a home mortgage month after month is a terrific example of a long credit history. Be sure to keep that credit score strong by making payments on time. If you’re having trouble some months, check out these money saving tips for owners. Keeping track of your finances when making such a large investment is vital, as it’s a lot of money at risk and you must take every precaution to ensure you plan out each step properly. Utilising an online platform such as pigly.com to work out what your potential mortgage payments may actually be along with many other essential money features will provide you with ultimate peace of mind, and you’ll feel a whole lot calmer knowing that your finances are in order throughout such an important journey. You can learn how to save money and budget properly so that you can successfully pay your mortgage each and every month, as though it can boost your credit score it can also harm it too. Failing to pay your mortgage or regularly paying very late will cause your credit score to take a huge hit, so it’s best to utilise the financial calculators discussed above before you make any important decisions so that you can be sure you will be able to afford your new home. You can build up your credit by doing other activities such as using a credit card, but most of the time simply renting accommodation wont do anything to help! Renting not only wastes your money, but also denies you of the opportunity to improve your credit through the implementation of a mortgage scheme.
Where to Live
You’re in control as a buyer and can choose the area you like the best for living location. As a renter, however, you’re more limited as to what to choose from, based on what’s available.
For example, a specific part of the city that you love might not have many rentals. But as a buyer, you can decide where to live and exactly what community you’re going to be a part of when you move into the place.
Community Involvement
As a homeowner, you’ll find that you feel like you have a place in the community. When there are neighbourhood meetings, for example, you’re able to give your say and be heard when it comes to discussions about changes to the area.
There are also opportunities to get to know local politicians, police, and firefighters. Those relationships are hard to build as a renter, as is the pride you likely feel in owning a home.
