Owning a home is a lot of responsibility, but it can also be extremely rewarding. Home ownership comes with benefits. Besides the personal accomplishment you feel when you are finally handed the keys and can walk through the front door for the first time, you'll also get several financial advantages too.
Here are five reasons to keep in mind:
- 1. It saves you money. While you pay more upfront when you purchase a home, you can save money in the long run, as opposed to renting. You’re investing your money into building up your equity rather than handing your cash over to a landlord and never seeing it again.
- 2. It allows you to call the shots. Want to paint every room in your home bright pink? Do as you please. It's your place (although you might outgrow that look pretty fast). Want to put a fence up in your backyard for your pet? Not only would you have a backyard to do this, unlike an apartment, but you would be able to erect a fence without much hassle. When you own a home, you can do what you like with your property. That is, unless you're in a neighborhood with a strict Homeowner’s Association because it may impose certain restrictions on how the outside of your house looks in order to conform with local tastes. But even there, you control the interior. So if pink is your thing, go for it.
- 3. It can increase your chances of getting a new loan. When you buy a home, you’ll need to take out a mortgage loan to help pay for it. As long as you make your payments on time, you’ll be able to increase your credit score. This can work in your favor if you want to take out a car loan, for example, because it indicates to lenders that you have a history of paying back what you owe. Lenders like to see that.
- 4. It provides you a sense of comfort. When you rent a place, you may never feel like you’re at home—even if you have lived there for several years. Buying a home feels different because it’s completely yours. You don’t have to wait for your landlord to have the walls repainted or to fix the dishwasher or to turn up the heat when the thermometer drops. You won’t have to worry about sharing the rent with an inconsiderate roommate, and you can even have a pet if you want to.
- 5. It helps you make money. Owning a home is an investment. If you keep up with the daily maintenance it requires and make updates when necessary, there’s a very good chance that its value will increase over time. This way, when you want to sell your home, you could earn a nice profit as a result. At the least, you'll have accrued equity that you'll never get from renting.
Want to learn more about how to finance your first home? Click here.