Why would anyone pay rent if they could own? Owning property has been a long-held desire of many people throughout history. From the small family house to the sprawling country estate, nothing screams success quite like the ownership of property. But what are the key reasons so many people are choosing to own instead of rent? This article will provide an in-depth look at the top five reasons why many are opting to take ownership instead of just paying rent.
1. The Cost Benefits of Owning
The value of owning your own home is hundreds of years old and for good reason. Owning your own home can be a beneficial financial decision in many ways.
- By paying off the mortgage, you’re investing in yourself and building equity.
- Mortgage rates are typically lower than other types of loan rates.
- You have control over the house and can refurbish it as you wish without worrying about the landlord.
- You have the potential to use some tax benefits of owning.
Owning a home is often cheaper than renting over the long-term. You’re paying off a fixed amount and your monthly payments remain the same for the length of the loan. In comparison, rents can increase significantly every year, so over the long-term, your payments may increase further than the mortgage. This can be especially true if interest rates remain low.
2. More Stable Housing Environment
Achieving a begins with increased access to safe, efficient, and affordable housing for both renters and homeowners. Governments, non-profit organizations, and private developers are some of the main players helping to realize a better housing landscape.
- Governments: Governments have taken the initiative to create various housing programs and initiatives to create more accessible housing. These programs often focus on creating housing units, preventing foreclosures, increasing home ownership, and investing in communities.
- Non-profits: Non-profits support the cause of creating a stable housing environment by providing low-cost housing, counseling and advisement, creating partnerships with local organizations, and working to eradicate discrimination and promote diversity in communities.
- Private Developers: Private developers are contributing to the cause of a by creating investment vehicles that give people access to affordable housing. These vehicles include construction of affordable living facilities, public-private housing projects, and utilizing public subsidies and grants.
These efforts are yielding tangible results, such as increasing the number of affordable housing units, relieving renters of financial burdens, preventing foreclosures and evictions, and fostering more equitable housing options.
3. Better Financial Investment Opportunities
People often look for exciting investments to increase their wealth. Though stock-market investment options promise great returns in the long run, it may not always be the best choice. Here are some alternate strategies to consider for creating sustainable wealth in the long-term:
- Real estate: Investing in realty bears low risks, offers great appreciation value, and provides rental income too. These properties can be leveraged, generate cash flow, and provide tax benefits.
- Precious metals: Investing in gold and other precious metals is considered timeless, and can ensure steady returns in the long-term.
- Small Businesses: Investing in a startup business or stock may not be profitable at first. But with proper guidance and analysis, this form of investment can become highly rewarding. It may take some time and effort but can bring fruitful results.
- Collectibles/Antiques: Collecting art, antique furniture and rare coins can be an attractive option, though the returns may depend upon the market. The good news is – the right item can bring great returns.
Finally, understand market trends and conditions before investing, and diversify across various options. Planning and diversifying your financial investments is key to optimizing potential returns and mitigating risks.
4. Enjoying the Benefits of Home Ownership
Home ownership may have felt like a distant dream for many years – but once you finally settle into your home it is important to make the most of the amazing benefits it can bring. Make sure you enjoy the solitude and serenity of owning a home of your own that reflects who you are!
- Safety and Security – Your home is your sanctuary and shouldn’t be intruded on by anyone else. Homeownership allows you to have the peace of mind that you, your family and your valuable possessions are safe and sound 24/7.
- Flexibility – Have the freedom to make minor changes or renovations at will – and, should you ever decide to move, you’ll know that your home is an asset that you can use to your advantage.
- Pride of Ownership – When it comes to owning a home, you get to be your own designer! Pick out colors, wallpaper and fixtures that will reflect your personal style and make the space uniquely yours.
In addition to the sense of freedom that comes with owning a home, cashing in on attractive tax benefits can be an added bonus. From mortgage interest write-offs to deductions on property taxes, there are plenty of financial advantages to owning a home.
With the right considerations made and goals set, owning, as opposed to renting, can create a sense of security, savings and freedom. Make the right decision for you and take advantage of the many benefits of owning your own home.