Making a decision to buy a house is a significant financial decision for anyone to make throughout their life. This is why you should carefully look at each and every aspect of such a purchase. Some of the more important and obvious advantages of buying a home vs renting one include the following ones:
o The Pros of buying your own home
There are myriad benefits of purchasing a property and they are the key reasons due to which many people ’take the plunge’ and invest their life’s savings into making such a purchase decision rather than living in rented premises:
o You can claim full ownership of your very own property
This is the single most fundamental difference between buying a home vs. living in a rented property. Yes, you have to put in a fairly large lump sum amount up front, and then subsequently go on to pay monthly mortgage payments. Ostensibly, it may look like the same amount that you would have to pay when you rent out a property, but there is a critical difference. Once the mortgage payments are complete, you will become the whole and sole “uncontested” owner of your very own property.
On the other hand, if you live in a rented house, then regardless of how many years you spend payingthe rent, the property will always belong to the person to whom you are paying said rent.
o Opportunity for refinance
Once you have uncontested title to a property you can leverage it out to refinance it and thereby acquire a loan that you can subsequently use to renovate your house. This way not only will you have better living quarters, but at the same time you will also be able to ensure that the overall ‘curb appeal’ of your property has also substantially increased. Apart from that you can use the ‘refinance’ option to purchase a new car or just about anything else you may have in mind.
o Greater long term stability
Due to the fact that you are living on property that belongs to you completely, you have the right to do pretty much whatever you like with the same property. By this it is meant that you are not answerable to any landlord or other owner. In the long run this means that you will never have to worry about an increase in rent or being served an ‘eviction’ notice from a place that you have grown to see as your own home.
Apart from the above, another great advantage of purchasing a place as opposed to renting the same, is that you will have a great asset, whose value will only increase, with time. However, paying rent by contrast, is a ‘sunk investment’ since you get nothing out of it, in the long run.
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