April 17th, 2012
Since the beginning of time people have argued and debated different topics. There is one topic that is argued and debated more than any other in the real estate market. There have been heated debates around the water cooler at real estate offices, and friends have questioned other friends on the touchy subject of renting versus owning. Which is the better choice? It really depends on your current situation, but this article will focus on some of the benefits that only owning a home can bring you.
Owning a home is cheaper than renting.
There is a common myth in the real estate industry. The myth? It is cheaper to rent than it is to buy. This is a myth and it is false. It may be cheaper to get your foot in the door of a rental property because you will not be required to pay as much money up front, but in the long run, it will cost a lot more to rent.
When you are renting, your rent can always increase. If the rental market sees a boom in activity, you can bet that your rent will go up to meet the demand of the market. If you own your home this does not happen. You have a contract that is called a mortgage. The length of this contract can vary, but they are generally around 30 years long. Your monthly mortgage payment will not increase for that entire period. So when the renters start having to pay twice as much, you will be happy that you purchased a home instead of renting. Your monthly payment is fixed! There will be no surprises there!
There is another reason why owning a home is cheaper than renting. Prices go up over time. I am sure that you have heard of this wonderful thing called inflation. Food prices go up, gas prices go up, automobile prices go up, and home prices go up too. If you buy your home now, just think of how much it will be worth in 30 years. It could very easily be worth twice what you initially paid for it, and if the real estate market is booming, then you may even get three or four times more than you paid for it. Your home could be your retirement and then some. This is just one more reason that owning your own home is cheaper than renting someone else’s home.
Entry Filed under: real estate advice