By Kyle Spearin
When most of us hit the point where we really want a home, we end up with one question: should I buy a home or rent one? While many people lean towards renting a home as a starter step, it actually isn’t all that great. Buying a home can empower you in
ways that you might not expect, which is why we wanted to explain the difference. In this article, we will discuss why buying a home is more advantageous than renting one.
Buying a House Sets You Free from the Rent Trap
The ‘rent trap’ is a commonly known occurrence where people find themselves tricked into spending a lot of money that could have been an investment. When you rent a home
you will be paying rent to an owner or landlord
While this might not be unusual to you if you are coming from an apartment, the reality is that it is nothing short of a complete waste of money.
When you pay rent to a homeowner, they are the ones who are benefitting. Not only do they make rent money from you, but they are also likely building equity in the home. If they own the home completely, they are just making straight money on you. Though
this isn’t any different from an apartment, it is distinctly different from buying a home.
Buying a home gives your monthly payments purpose. Instead of simply spending money and losing it, you are spending money that can be a benefit to you later. You will build equity, which means that you are making an investment that you can leverage for
your own gain later. In the best case, you will pay off the home. If not, you can still sell the home and benefit from your investment financially.
You Can Start Building Your Real Estate Portfolio
The real estate market absolutely loves new homeowners, but there is more to buying a home than just owning a home. Real estate is quickly becoming one of the preferred money-making methods and buying a home can help you to get started. You don’t need
to be a large-scale property owner with tons of money to make money in the real estate world. You can start building your real estate portfolio
with a few simple steps. Buying a home can be your ticket to entering the professional real estate space, and there is massive growth potential.
As a homeowner, you can really make the most of your living space. Even simple upgrades can help you to make more money than you spent when it comes time to sell the home. Treat your home with respect and as an opportunity. You will be able to make a
lot more on the home down the line as long as the market is doing well. In the event that you don’t want to sell homes or flip properties, you can still use this property to demonstrate that you are a worthy investment during future home sales if you
decide to upgrade. Let your care of the home speak for you.
Buying a House Can Lower Your Living Cost
Something that always seems to surprise serial renters is just how much more they are paying a month simply because they are renting. While you might be able to rent a home for cheaper than an apartment in some cases
, you are still overpaying. Rental prices are higher than mortgages
in a lot of places, which means that choosing to rent instead of buy also means choosing to spend more every month.
Beyond rent, you can lower your living cost simply by making good choices. As a renter, you are subject to the whims of the landlord. If you own the property, you can choose to invest in changes that help lower monthly costs like high-efficiency appliances
or even enforced windows. Most landlords simply go with what they know or the first option that they found. As your own landlord, you can choose to focus on money-saving opportunities that will lower your monthly costs.
Your House, Your Call
A major downside to renting a home is the fact that you will always be limited by the landlord from a design perspective. If you rent a home and don’t like something about it, it really doesn’t matter. You will be stuck with it. As a homeowner, you have
the power to change anything that you want. You can turn any home into a dream home—and it is all within your control!
and remodels give you the opportunity
to customize a home to suit your needs and preferences. You can change up that problematic bathroom, open up your family room, or even add on to a home. As the owner of the home, all of this is available to you, which means your home can actually get
better with time. Being able to have this kind of control can really help you to appreciate a space more than you did on day one.
Your Wealth Can Increase Exponentially
Buying a home
can be an
investment and investments come with future opportunities. The more time that you spend paying on a home that you own, the more the real value of the property becomes available. Paying off a home and selling it gives you the ability to turn a home into
What makes this more powerful is the fact that you can continue to increase your own wealth through your choices. You can choose to remodel a part of your home
to make it better. You can add new appliances. You can make these decisions that become worth even more at the point where a sale is made. Even better, you can rent the home out yourself and start making profit on it sooner rather than later. There really
is just so much opportunity by making this investment.