So, you’re thinking about renting a new apartment or townhouse? Well, let’s stop you right there. There are some important things that you need to keep in mind before you sign that contract to rent it out. And one of those things is the fact that owning your own place is actually a better choice than renting someone else’s. Now, it might be a little scary when you start thinking about owning your own place, but we’re going to go through some of the top reasons to do just that down below. This is a big step in your life and you should really be taking the step that’s best for you. And owning your own house might be that step.
- You Will Be Improving Your Credit Score
If you get a mortgage to buy a new home, you’re going to be improving your credit. That’s going without saying that you make your payments on time to pay off the mortgage over time. If you do this, then lenders are going to look more favorably on your credit applications for other things, as well. This means that you’re more likely to get approved for other credit cards or loans from banks when you pay your mortgage payments on time.
- You Can Borrow Against Your Home
Whenever you own your home, you are able to use that home as collateral. This means that if you want to get a personal loan for something from the bank, then you can use your house as extra security in that loan. This may even lower the interest rate that you pay on that loan, which is good news for anyone who’s gone into loans with high interest rates before. However, do this with caution. When you own a home, and use it as collateral, you want to ensure that you can pay back the loan without losing your home in the process.
- You Will Be Able to Create a Nest Egg
When you’re thinking about reasons to buy over renting, then this should be at the top of your list. Whether you’re going to buy a villa in Cannes or buy anywhere else in the world, this is something you’ve got to think about. As you finish up your mortgage payments, you are going to start owning more and more of your home. And once you have finished all of this, then you’ll have a significant asset in your name that’s worth a lot of money – a nest egg that you can either sell off or pass down to other members in your family.
- Buying Can Actually Be Cheaper Than Renting
It’s actually possible that you can find owning a house to be a lot cheaper than renting an apartment or townhouse. You can look around to see what’s going to be less expensive in the long term. Think about how much you’re going to pay overtime with a mortgage payment when compared to rent every month in an apartment.
- You Won’t Have to Be at The Whim of Your Landlord
One of the biggest reasons why you should own your house rather than renting it is the fact that you don’t have to deal with a landlord. Your house is going to be yours and yours alone. You won’t have to deal with any rules that are set by a landlord concerning what you can and cannot do with your house. You won’t have to deal with any noise complaints from neighbors that are living right next to you. This freedom is something that makes owning a house really worth it when compared to renting out an apartment.
- Rent Money Is Dead Money
Thinking about your money in a long-term sense, it’s easy to see why rent money can be seen as dead money. You are just throwing money at someone else’s mortgage, rather than owning anything of your own. When you invest your money in your own house, you’re going to be investing in your own future and making your own decisions.
When you’re thinking about owning or renting a new place, you should definitely put owning a house as a priority over renting a property. For the reasons, we listed above and more, this is the best decision you can make for your present and your future self.