For decades, buying a property has always been viewed as a significant achievement. However, since the pandemic, growing economic instability has left some wondering if buying a home is really worth it.
But even so, it’s key to remember that the housing market has shifted to a buyers’ market due to the economic instability; with property prices plummeting in some areas, now is genuinely the ideal time to invest in USA real estate.
With that said, let’s take a look at the real advantages of owning a home.
You Can Build Equity
Equity explains the amount of money you build up whilst the market grows and as you pay off your mortgage loan. With equity, when you own your home, make extra mortgage payments, or invest in value-adding property upgrades, you can leverage your property equity and access this money through redrawing on your home loan.
Mortgage Repayments Can Save You Money
Not only will your mortgage repayments stay the same over the years, but you’ll also find that mortgage repayments are much lower than rental fees on the same kind of property. Therefore, you’ll save substantially.
It’s also important to know that you have repayment options for when you’re struggling to handle the debt. Make sure to read this refinancing guide in order to figure out the ideal repayment plan for your situation. For example, you can look into a loan deferral, lower interest rates, or principal reductions. With these options available, it’s possible to make sure that your, mortgage payments fit well within your budget.
Moreover, there are ways to reduce mortgage costs and methods to pay off your mortgage loan sooner, like splitting your repayments into biweekly payments, refinancing, consolidation, or paying a bit extra monthly to cancel out the interest on the home loan.
As a tenant, there’s no such thing as living stability; your landlord can decide to sell, end your lease, or simply choose not to renew your stay for any reason. As a result, tenants end up moving around quite a bit over the years, never truly acquiring long-term living stability.
But if you own a home, you’ll have unwavering living stability. Because the property is yours, you can decide to live there forever, rent it out later on, or sell it when the time is right.
You Can Modify Your Property
If you’ve been renting, you probably already know how hard it can be to get your security deposit back. Unfortunately, tenants aren’t allowed to modify their rental homes at all. Even a few nails in the wall to hang artwork can see you losing your security deposit, never mind the mistake of repainting to your preferred color scheme, or worse, damaging the flooring.
But when buying your own home, you can modify it as much as you want. You can invest in value-adding upgrades like giving the kitchen a makeover, redoing the flooring, and repainting or even putting up some accent wallpaper in the living room.
There are also ways to renovate a home with no money; financing home improvements or eventually withdrawing equity are two excellent options.
More Budget Stability
Of course, there are costs associated with owning a home that goes beyond the purchase price. For example, you’ll need to pay utilities and property taxes and keep up with property maintenance costs.
But even so, it’s far easier to manage your budget as a homeowner than as a tenant. Because mortgage repayments will stay the same over the years, you won’t need to wonder how much your landlord will increase the rent each year. Indeed, you need to have large sums of cash to purchase a home outright. However, if you cannot afford that large amount of money, there are various options, like Fellowship Home Loans, that have several payment arrangements which will play a vital role in the home-buying process and financing, so it will be easy for you to fund your new property so you can have your own home no matter what your financial situation may be.