Renting vs. Owning – A Look at Pros and Cons of Owning

Buying a home is considered one of life’s most significant milestones, and rightfully so as it requires a lot of decision making and investing. But what do you do when you’re faced with the decision of renting or owning? Do you rent or do you take that leap and invest in that dream home?

To help determine the benefits and not, we look at the pros and cons of owning a home.

What are the pros of owning a home? They include:

· Monetary Savings – When you decide to take that leap and walk into a mortgage brokers’ office to buy a home, you may find monthly mortgage costs cheaper than renting. The reason for this is based on the current interest rates and these benefits will not always carry through the years you own the home. The payout, though, will be better than renting, though, as your mortgage be tax-deductible.

• Investment and Asset – When someone asks, how rich are you? They aren’t just asking how much you have in your bank account, they are asking about your wealth overall. And when you own a home, that is considered an asset; therefore, it is part of your wealth. The more you have paid off on your home, the more freedom you have to do as you want. Once you have paid or if you have paid off the house, you can then turn your home into an investment and rent it out. Regardless of how you look at it, owning a home will be an investment in the long-run.

• Personalized – Unlike renting, when you own a home, you have the luxury of being able to customize it to your liking. From the wall colors to the furnishings, you can choose to decorate your home to your liking and style.

What about the cons? The cons of owning include:

· Down Payment – When you are looking to buy, one of the terms you will hear is “down payment,” this is a term that can sometimes deter one from buying. It is also something that can be difficult to have, as, for the most part, a typical down payment is 5% of the total cost. For example, if the home is $450,000, the down payment required is $22,500. Most brokers would recommend a down payment of 10%; however, that may not always be possible.

• Costly – When you own a home, unless it is a new-built, there can be additional costs that one may not realize right away. From window or roof repairs, to furnace upgrades, these can slowly add-up and result in what many now refer to as “house poor.”

While it can seem daunting buying a home, many long-term benefits come from owning a place that is your own. There are long-term investments and returns, but also the freedom that comes with having a house that is your own. Unlike the constraints that can come from living in an apartment or condominium, when you own a home, you can put up a picket fence, grow a garden, or raise a family outside the city.

The next time you are looking to upgrade your life, consider taking that leap and buying that house to call home.

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate

This post was written by kamloopshomesearchcom