56 percent of US citizens own homes while 25 percent intend to purchase one within 10 years. And it makes sense, considering how owning a house of your own is a key component of the American dream. Contrary to popular belief, however, developing your own home is not the pricey affair many make it out to be. Sure, you might have to pay a bit more towards housing expenses each month – in Florida, for example, homeowners pay 33 percent more than home renters (Source: cnbc.com) – but the benefits that come from owning property far outweigh the costs. Plus, there are some drawbacks to renting that, while not immediately apparent, tend to be a deal-breaker in the long run. We discuss all this and more below:
Why Home Ownership Makes Sense?
- Ownership: When you buy a piece of land and hire a contractor to construct a home according to your lifestyle requirements and tastes, it imparts a sense of pride and security in home ownership that renting an apartment can never match up to.
- Increasing Rentals: When you’re renting a unit, the lease is either month-to-month, quarterly, or yearly. In some cases, it could extend a couple more years,but that’s it. So, who’s to say that your landlord won’t hike up the renting costs when the time comes to renew your agreement? Thankfully, when you own a home of your own, you will not have to contend with the problem of increasing rentals.
- Stable Expenditure: Did you draw a loan to pay for the construction costs and materials of your new home? Well, in that case, you already know how much EMI you need to pay over the long term. Thus, the future expenses are a lot more stable and predictable than renting.
- Build Credit and Equity: Owning a home is akin to having a safety net for emergencies. Plus, your credit receives a huge boost,and that provides greater financial stability and better rates on other investments.
- No More ‘NO’: Many rental properties feature a long list of do’s and don’ts. For example, you might have to announce any guests staying over or any pets you’re bringing into the property. But when you own the house, you do not have to seek permission. Your actions are entirely your own, and nobody’s there to tell you what to do.
At first glance, renting may seem like an easier choice. But once you get into the nitty-gritty of things, you start to understand why many people save up and build their own home as quickly as possible. The benefits of homeownership can never compare to renting, and if you’ve understood that and want to take the first steps towards having your own property, contact us here.