This post is from a colleague of mine - Clinton Wilkins of the Clinton Wilkins Mortgage Team. In it, he talks about the advantages of buying vs renting. Enjoy!
On the hunt for a new house? One question that is bound to come up is whether you should buy or rent. While this can be an easy choice for some of you, it can be quite difficult for others. Some house hunters are unsure where life is going to take them and are expecting to move around a lot. For these people, renting a house may be a better option since it allows you to pick up and move easily. For those that are looking for their “forever home” and are ready to settle down for years to come, buying a house is the perfect option with many benefits to the homeowner.
One of the first things that come to mind in the argument of buying versus renting is which choice has a more stable payment option. Often, a lease agreement will last one to two years before you have to resign the lease. Many landlords will take that opportunity to increase the rent on the property as much as the law allows. This means that you can see an increase in the amount you pay per month when resigning. Contrarily, when you are choosing your mortgage option, you can opt for a fixed term. This way you know exactly how much you will be paying per month. At first, your mortgage payments may seem higher than monthly rent. In the long run you will be saving money when buying a home since you will have a valuable asset.
As a homeowner, every month you will be making mortgage payments. This money will help you build up equity on the place you own, which is the difference in the value of the home and your outstanding mortgage. The more payments you make and longer you stay in your home, the more equity you will have. When renting, you will still be paying off a mortgage, but it belongs to someone else. This means that you are helping your landlord build equity, rather than yourself. So why not create a valuable asset in a place that YOU own?
Bring Out Your Inner Interior Designer!
All those hours of watching home improvement shows, like Property Brothers, will finally be put to good use when you buy your own home. When you buy your own property, you can unleash your inner interior designer and change whatever you want. You can change the whole theme of the house by tearing down walls and changing those ugly countertops! As a renter, it can be difficult to make even minor décor changes like paint colour and light fixtures. This is because they will most likely have to be changed back at the time of your move out.
Family Stability and Community
When you buy a home and design it how you want, you are making it your own. This allows your family to create memories in a lasting space that they get to call their own. You will also be creating a source of financial security for later in life when you pay off the mortgage. You will have a very valuable asset. Additionally, you are more likely to have an active interest in the community and will get to know your neighbors better when you are a homeowner. This helps keep the neighborhood safe and well connected.