12 Jun The Benefits of Buying Over Renting
Our Tennessee mortgage lender team often gets asked whether it makes more sense to buy a home or to just rent. It really depends on where you are financially, as well as what your plans are for the near future. If you are planning on moving around a bit, it would probably make more sense to rent. But for those who are looking to settle down, owning a home can be more beneficial. Here are some of the top reasons that people choose to buy their own home, rather than rent.
Freedom to Do What You Want
From painting your room purple to changing the flooring, when you own your home, you don’t have to ask permission from the landlord to make changes. This means you have the freedom to style your home the way you want it and truly make it your space. You can even increase your homes’ value with some home improvements. Need some extra room? You can add an extension to the home, rather than having to move elsewhere to rent a bigger space.
In most cases, if you have a mortgage with a fixed rate, your monthly payments stay the same. When you rent, there is always the worry of having a rise in the rent payments, which isn’t great if you are on a budget as it is. Of course, homeowners do have things like property taxes each year, which can fluctuate slightly. However, this is usually a tax-deductible fee, as is the interest that you pay on your mortgage.
When you buy a home, you are investing in your future. Your home appreciates over time, which can increase its value. The money you are paying each month is going toward something substantial, whereas, when you rent, your money isn’t really going anywhere except to your landlord. You also have the benefit of owning a rent-free home once the mortgage has been paid.
You Gain Stability
Renting can feel pretty unstable for many. Any change can mean no longer having a roof over your head. Your landlord may suddenly decide to sell the property for example, which means you now have to look for somewhere else to live. Or the rent could be hiked up, causing you to have to find somewhere cheaper to live. When you own your own home, you get that stability of knowing this won’t happen to you. It makes more sense to pay a mortgage for 10 to 15 years and have something to show for it.
Each month, when you make your mortgage repayment, you are putting more equity into your home. The equity is like a savings account that you can tap into should you need to make home repairs or put your child through college. You’re basically investing in your own home, rather than in someone else’s.
For many, buying a home makes more sense financially than renting. If you are ready to move from renting to owning a home, give our Tennessee mortgage lender team a call today at (615) 833-0456!