- Buying a home is a big commitment, but it may be worth it.
- You may have a wider choice of properties to buy versus to rent.
- You also aren't reliant on a landlord to allow you to continue renting or to make fixes.
While buying isn't right for everyone, it can have some benefits.
If you're deciding between buying a house and renting one, it's important to consider the pros and cons of each choice. Buying is a big financial commitment that can have some downsides, including the fact you'll be tying up a lot of money in a down payment and committing to a mortgage payment for decades to come.
But, there are also some benefits as well. In fact, here are four big reasons why buying a house beats renting that you should consider if you're financially prepared to become a homeowner.
1. You can build home equity
The ability to build equity in your home is one of the single biggest benefits of buying. When you rent, your payment goes to your landlord every month but you don't acquire ownership in your property or build any wealth with your payments. But when you buy, each monthly mortgage payment gets you a little closer to owning a valuable asset free and clear.
When you purchase a property, your home's value will also ideally go up over time. This helps you build even more equity. After paying off your mortgage over many years, eventually you will end up owning a house that's worth a lot of money -- usually much more than you paid for it. This valuable asset will give you a significantly higher net worth.
2. You'll have a wider choice of properties
In many parts of the country, you're limited in the kinds of properties you can rent. You may have a much wider choice if you buy a house instead. In fact, if you can't find a property that exactly suits your needs and you have the money, you can even opt to build a house that's designed exactly for your family.
3. You aren't at the mercy of a landlord
As a renter, you are reliant on your landlord to make any necessary repairs or updates. While there are benefits to this because you don't have to come up with the money when things go wrong, this can also pose problems if your landlord makes shoddy repairs to save money or is slow to respond to requests.
You are also reliant on your landlord to allow you to stay in your home as a renter. You are only guaranteed to be able to keep living in your house during the term of your current lease. After that, your landlord could potentially evict you or raise rent to an unaffordable level (depending on local laws protecting tenants). While landlords would have to give you notice, you could still be forced to move if you don't want to.
Landlords could also be foreclosed on or face a tax sale if they don't pay the bills, which could leave you out in the cold.
4. You can make your home your own
Finally, as the owner of a home, you can upgrade it and decorate it to your liking without having to worry about getting your security deposit back or losing the money you spent on upgrades when you move.
For all of these reasons, you may want to consider purchasing a property if you can find an affordable one and you're in a financial position to do so.
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