The benefits of owning your house as opposed to renting are numerous — especially as the cost of renting continues to rise while wages remain stagnant. Here are the reasons why you should invest in owning your home.
You’ll Build Equity With Each Mortgage Payment
Let’s start with the basics: you’ll build equity with each payment you make toward your mortgage. As you make your payments, you’ll build equity in the home. In fact, you’ll build equity more quickly than if you were to invest in stocks or bonds.
The reason is twofold. First, you have very little risk with a low-interest mortgage. Other than that, your home’s value is likely to increase over time as the area grows and demand for housing increases.
Renting Is Constantly Increasing In Price
Rents are rising at an accelerated rate, while homeownership costs remain relatively constant. Why would you want to rent when the price is always going up, while the price of homeownership remains relatively constant?
In addition, homeownership is correlated with higher levels of wealth compared to renting. According to a recent report, homeownership has a positive correlation with higher household net worth, which means that homeowners are more likely to have more assets and less debt compared to non-homeowners.
Owning Gives You Equity When You Sell
But won’t the value of your home decrease when you sell it? Yes, it will — but let’s look at the big picture. In general, the more time you own a home and the more care you put into it, the more it will increase in value.
This is especially true if you purchase a home in an up-and-coming neighborhood, where real estate prices are expected to rise at a far more accelerated rate than the national median. When you sell your home, you’ll actually increase the amount of equity you have in the home.
Insurance Is Included In Monthly Payments
If you rent, you’re responsible for that expense. If you own your home, however, insurance would kick in and cover that damage. In fact, homeowners insurance covers a wide range of potential disasters.
Such disasters include damage from wind, hurricanes, and tornadoes, damage from fire, damage from theft, vandalism, falling objects, and damage from water (such as floods and leaks). While your landlord may offer insurance, it’s unlikely that they’ll be able to cover damage from all of these situations.
It’s A Great Investment For The Future
Homeownership is a long-term investment in which you’re not only benefiting from the increase in the value of your home but also from the equity you’re building. This equity can be used to finance other big-ticket expenses, such as college tuition for your kids or a quick down payment for your next home.
Get The Best House Of Your Own Here!
After reading this article, hopefully, you can see why it’s a good idea to own your home at Aquila Estates Conway SC instead of renting. Owning your home allows you to build equity over time, while rental prices are always increasing.
You’ll also have insurance coverage on your home that you wouldn’t have with a landlord, and you can use the equity in your home to invest in your future — whether that means paying for your children’s education or your next home!