Why you should buy instead of renting right now.

Why you should buy instead of renting right now.

1. You Can Paint the walls ANY color you want

Owning your home means you can paint the living room Chartreuse with an Eggplant trim if you want, you can change your floors from tile to hardwood or to shag carpeting, and you can put a new chandelier in the bathroom without asking a landlord for permission. And sometimes, making these home improvements will increase the value of your property but not the examples I just gave you.

2. Build Credit 

Owning a home can help to build your credit score. Having a good credit score allows you to borrow money to buy the things you really want and need in life, and one of the ways to build that credit score up so that it is attractive is to take on a long-term investment, exactly like buying a house. You will have more financial stability and – because of the equity built up in your home – you will also have a financial safety net.

3. A mortgage is Fixed while Rent will Always Rise

If you get a fixed-rate mortgage on a home purchase, your mortgage payment can never change. Unless a renter is in a rent-controlled building or neighborhood, their rent is at risk of rising every year. Since the mortgage payment is the bulk of the owner’s housing payment, this creates a lot of budget stability. As for the other costs, both owners and renters have insurance (though insurance isn’t required for renters like it is for owners), and that fee can change slightly over the years. And while owners have property taxes that renters don’t, and property taxes can rise as the home appreciates, this fee is tax-deductible.

4. Equity = Savings

As you pay down your mortgage each month, and your home increases in value over the years, you are increasing your equity. This equity is a form of savings that you will get back when you sell your home or you can get a line of credit and borrow on it at a lower interest rate than a traditional loan.

5. It’s Cheaper 

Despite the expensive initial outlay (including the down payment), owning a home is generally a lot cheaper than paying rent. This is because when you rent, not only are you paying your landlord’s mortgage, but you are also paying an additional sum on top because they will want to make a profit. Your money is going towards building up your landlord’s equity in the property, which means that they could choose to sell it at any time thanks to your contributions.