Each year a new wave of first time home buyers hits the trail in search of their humble abode. Eager buyers must understand the true value of home ownership. There are advantages to buying a home and there is the matter of timing, which can have a lot to do with the housing market and related financing programs.
What to consider when deciding on buying a home vs. renting according to an article by Dr Sharon L Bender
- Buying a home means garnering equity, if the owner keeps the house long enough to overcome the initial cost of its purchase, that is. That can be one of the most surprising matters associated with home ownership.
- Buying a home brings a sense of pride and accomplishment. Buying a home is also an opportunity to express more freely your personal taste, as long as the neighbours don’t have to view your idea of a decent-looking sculpture in your front yard every time they pull out of their driveway. Not only is there more freedom with home ownership, but there is likely more space than one would find in a rented apartment.
- Buying a home brings a realization that you are part of a more permanent community in which you might be a contributor to the well being of others around you. In a rented home or apartment one might feel less involved and temporary when we humans tend to be territorial, inherently needing to claim a piece of ground as our own with its sense of permanence. We think about raising children and providing them with “roots” that grow in a yard rather than on a crowded balcony.
- When owning a home, each monthly payment is like putting money into a savings account rather than giving it to the landlord when renting. Each time the mortgage is paid a percentage goes toward your “equity.” This is indeed like having money in the bank as it is something you can draw upon later if needed. Whereas rental rates increase yearly, the principle on your mortgage is going down with each payment. Plus as the housing market grows, so do the valuations of homes.
Buying a home brings a sense of accomplishment, but “nothing happens unless first a dream!”