Owning a home is seen as a standing symbol all around the world. In keeping with Gord Collins during a Rental article from 2021, “we’ve all had the worth instilled in us that owning a property could be a smart wealth creation strategy”. Can buying a house really help build wealth? Does renting allow you to be truly free? When deciding whether to buy or rent a house, there are several factors to think about.
- How stable your employment is
- Will there be a desire to migrate very soon?
- How high will the costs of houses/rentals increase in years to come?
- Freedom to do what you want in the home
- How much are the hidden costs of owning your home?
After considering these factors, one point to take into account is that it is totally up to you to decide which option is best for you. Both options have their advantages and we will be sharing some below.
Being able to own a house is wonderful because the value of your property is set to improve in value over time. If you opt to sell, you will be even wealthier because as the owner of a property, you have the choice of renting it and generating a passive income stream. Smart purchasers view this as an investment opportunity.
Purchasing a home is an effective long-term solution for somebody in a stable career, who can withstand recessions, and who rents out a little of their home to form consistent monthly earnings. Buying a property and renting out an apartment allows you to appreciate your financial goal.
Some benefits of purchasing a home are highlighted below;
* Helps build up long-term wealth
* Makes rental investment possible for income
* Provides a stronger sense of security and stability
* More control of your expenses
* Helps build equity
If you are open to the idea of renting a home, it’s an excellent choice. Renting homes will give you more flexibility and will free you of any worries.
Highlighted, renting a home ensures
* No down-payment stress
* Less worry about mortgage commitments
* Low maintenance costs for the house and property
* No need to fret about buying a money pit
* Freedom to travel and move as you please
* No danger of a housing market crash
* Unemployment making you lose your investment
* Fixed rent amounts
* quick access to amenities
* Increased flexibility on where you reside
It’s essential to think carefully about your goals, not only regarding your house, but your entire financial situation as well. In terms of control and security, owning your home can be very satisfying, while renting allows you more flexibility and a lower maintenance lifestyle.