To rent or buy? Why home ownership wins.
Renting a home is usually the first step toward home ownership. It’s cheaper, at least initially, and there is less commitment required, making it ideal for students, those just starting their career or anyone looking for a short-term solution. Your monthly costs are generally fixed for the term of the lease and the landlord is usually responsible for the upkeep and maintenance costs of the property as well as property taxes, leaving you with few surprises.
But it also leaves you with very little control. You are left at the mercy of your landlord. Chances are if you haven’t experienced a slumlord personally, you’ve at least heard a few eerie tales from friends who have. You also have less control and decision-making power with regard to the look and function of your living space.
Given the choice between renting a place to live or “renting” the money (via a mortgage) to buy, buying is always more advantageous.
As an investment, a house is an extremely good one because the initial outlay is only the down payment, but after a number of years, you own a significantly valuable asset. Since homes typically increase in value, you will build equity and provide a nest egg for you and your family. You will be spending your hard-earned cash on something for YOU! After all, why would you pay someone else’s mortgage when you can be paying your own.
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WHEN RENTING GOES WRONG
You find a place you like. You sign a rental agreement. Both parties agree to the terms. You move in. Seems simple, right? But what about when things go wrong and you’re left dealing with a lousy landlord?
As these Reddit users share…
“We had a leak in the house that went unfixed for weeks, then my ceiling sprouted black mold in a large patch 5 feet wide, and while standing underneath it the landlord denied there was mold and refused to fix it or do anything about it.”
“At my first apartment, if I didn’t answer the door, my landlord would knock on my bedroom window. If I still didn’t answer, he’d open the window from outside and shout into it.”
“Three times over the course of several months my shower and toilet backed up with sewage. Every time, landlord tried to pin it on us and refused to find out why this kept happening.”
Situations like this can be avoided completely with home ownership. The only person you’ll be at the mercy of is yourself!
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Make yourself at home. When you own your property, you are free to do as you like. Are you dreaming of a fun feature wall, a chef’s kitchen ready to entertain or a home theatre room? The only limit when you own your own home is your imagination, meaning you can really make your space your own.
Homeownership is also associated with a greater sense of community, safety and security. You will be jointly invested in making the area a better place to live, grow and play. And since it’s a long-term stay, you will really get to know your neighbours. Chances are they will be in similar stages in life and have similar interests and goals. You will make meaningful connections and lifelong friendships.
Homeownership is an exciting process. It’s important to figure out what’s best for your current and future self, but it’s never too early to start dreaming, planning, and looking for that perfect place to put down roots. Whether home ownership is in the near future or a couple years down the road, talking to an expert will put you a step closer to your goals.
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