Before you set out to purchase a home it is important to know if buying is the best option for you. Below are some points to consider when making your decision.
- Freedom from rent increases: with a fixed-rate mortgage like most homeowners have, your payments of principal and interest remain the same. You no longer have to worry about increasing rents that will continue to rise more and more over the next ten years.
- Building equity for the future: rental payments are gone once you have made them. That money is never seen again. But, with each mortgage payment you are buying something tangible, making an investment and building equity in your home. The longer you own your home typically the larger your equity.
- Keeping up with inflation: owning your home helps you to keep up with inflation. Real Estate has historically kept pace with and usually appreciates faster than the rate of inflation. This makes owning a home one of the very best financial investments you can make.
- Security for retirement: eventually your mortgage will be paid, leaving you rent free for your retirement.
- Payback on improvements: a renter gets no benefits from any of the improvements that they make on the property. As a homeowner you can realize some or even all of the costs from the improvements you made when you sell your home.
- Lifestyle: when living in a neighbourhood that is filled with homeowners like yourself, you will find that they too care about and have invested in their property. They like you are willing to invest time, money and effort into the care of their property, which ultimately improves the value if your own.
- It will be yours: when own your home there are no more restrictions that renters face. You can paint the walls any color, hammer any nails into the walls and make any improvements or renovations you would like.