5 Reasons why Buying a Home is Better than Renting

A question many people face when looking for a place to live, is whether to buy or rent? Although renting does have its certain advantages - less upfront investment, and the ability to move when your agreement or lease is up without having to sell - for most people buying a home is a much better option than renting.

Here are 5 reasons why you should buy rather than rent:

1. It’s an investment

It’s important to note that we’re in a cycle where home values have been steadily rising. So if you own you’re own home, you gain equity when you make your payment every month, and that equity will rise with the value of your home.

Consider it an investment. Each month you make your mortgage payment or your home value rises, it’s almost like making another small deposit in a building bank account.

2. You aren’t paying someone else’s mortgage

When you own a house, you aren’t paying someone else’s mortgage. Isn’t it frustrating when you see hundreds of dollars funnel out of your bank account each week, going into someone else’s pocket?

Well, if you buy your own home, you may be paying a mortgage, but at least it gets you closer to owning your own place outright.

Plus, it’s much easier to say goodbye to money that is going towards something of your own, rather than paying someone else’s bills.

3. Buying a home costs less than renting over time

In the long term, buying is the cheaper alternative. Although initially, your mortgage payment may be more than you’d pay in rent, you’d still spend less over the life of the loan if you buy. Rents can rise over time, which changes the equation.

When you factor in the possibility that real estate values often go up over the years, home ownership looks even better. The cherry on top is that when your mortgage is paid off, you can stop making payments but you keep the house.

4. Paying a Fixed Mortgage Stabilises Your Budget

As anyone who has rented a home knows, rent hikes are the norm and often out of your control. If you're in an area without rent control, the landlord can raise the rent whenever they like.

Even with rent control, there are exceptions and you can't count on your rent remaining stable. If you buy a home and take out a fixed rate mortgage, your house payment stays the same for the life of the loan, whether it's 15 or 30 years.

5. It’s Yours

One of the best reasons about buying a house is the fact that it’s yours. You can do whatever you want with it. Unlike a rental, whether your idea of the perfect home includes pink walls, funky wallpaper or chandelier ceilings - you have the freedom to make that decision.

It’s your own space that you have the right to call home.

Get in Touch

If you’re thinking of buying a home, and need help with the process, get in touch with us to have a chat.