The thought of purchasing a home instead of renting can be daunting. You have heard of all of the disadvantages and frustrations of buying a home. The problem is, those make for great stories and you rarely hear of the great benefits that overwhelm the disadvantages. Let’s take a look at a few of those advantages and see if we can create a fresh perspective on being a homeowner.
Build Your Savings, Invest Wisely
Do you struggle with putting money into a savings account on a consistent basis? Owning a home can help you get past the mental game by turning a monthly expense into a passive-aggressive method of saving through your mortgage payment by building equity in a home. If you need a strict method, you can go with a 15-year mortgage that requires you to invest in your house at a certain rate or you can go with a 30-year mortgage with the flexibility to increase the amount you pay each month if you so desire. By switching from renting to owning, you now have a long-term investment strategy while likely decreasing your monthly expenses.
More room, less expensive
As more young adults continue to choose to rent over buying, you have likely experienced rental rates increasing consistently year after year. One of the great financial features of buying a home is that you lock in a fixed mortgage payment amount and it stays at that amount for the entire duration of your 15 or 30-year mortgage. Best of all, if you keep your house for the duration of the mortgage, the mortgage payment COMPLETELY STOPS! You are probably thinking that is a no-brainer but many people have not connected that with their rental payments. Imagine living where you are currently while knowing on a certain date you get to keep living there without having to pay your biggest expense each month! Let’s just throw in an added bonus that in most markets, if you buy, you will be able to afford a larger home at the same monthly price that you currently rent!
More freedom, no yearly contract
Now you are probably thinking that is all great but you have the freedom to move whenever you want while renting. The problem is you do have that pesky contract that requires a large chunk of money to break. Now when you move, you have thrown a significant amount of money away through rent without building any equity and they want more money just to leave?! That doesn’t sound like freedom to me. Now imagine you are in a house and you get a job offer in another state. You were forward thinking so you bought a house in a great seller and rental market. Now you have options and you can come out making a profit or handing your property over to your friendly neighborhood realtor to manage as a rental property and now you have passive income! Wow!
Hands on or hands off, you have options
Now that we have covered long-term saving, cheaper rent/mortgage, more space and freedom to move while creating passive income, there is one more major topic that keeps people buying: Maintenance. You probably enjoy being able to pick up the phone to call the maintenance office of your apartment complex or property management company and requesting service to repair that leaky faucet. Did you know you can have the same setup while owning a home? Consider getting a maintenance plan with your local handyman and a home warranty that covers major expenses related to appliances. Now you have the same setup as a renter while still having the advantages of owning a home!
If you do not have a Realtor, feel free to contact me and if you are not in my area I can help you find a Realtor that is a good fit for your needs!
Ashley White – 321.332.3794 – Ashley.White@kw.com – Greater Orlando Realtor