We are about to weigh the benefits of owning over renting, particularly for those still hanging on the wrong side of the white-picket fence.
There are several advantages you get from owning your property compared to renting it from another person. We see that owning a property has both financial and lifestyle benefits. It may look scary, but there are professionals to guide you on every step of the way.
It’s a great thing that you’re thinking of buying your first property. Though you might be quite nervous about this next step – it’s great to know that this step is in the right direction for you. Research has shown that there are distinct advantages from owning a home as compared to renting one – specifically when it’s about growing your net worth and offering a secure environment for you and your family.
Benefits of Owning a Property
We are about to weigh the benefit of owning property over renting one –
· When the value of properties increases, the value of your personal wealth also rises. Therefore, there is a huge probability you’ll make more money if you sell it. However, if you’re renting a property and its value rises, you’ll definitely have to pay more rent.
· In owning property, the building maintenance and repairs require budgets. However, all improvements that are made to your property will raise the value of your investment. This isn’t the same with renting as the maintenance of the building is solely the responsibility of your landlord.
· There may be fluctuations of repayments when owning a property – both rising and falling following the interest rate changes, but this expense could be controlled by fixing your property loan interest rate. Whereas, your rent is fixed in rented properties – normally 6-12 months.
· Your property is expected to be an appreciating asset, specifically for longterm, and it could also be used as a property for investment in the long run – Whereas, you are paying-off another person’s home loan when renting a property.
· Your bond repayment could be higher than rents you could pay to acquire the same property. However, paying off home loans is a form of savings – as you are growing equity in valuable assets.
· Buying a property makes it your own and you can live in it for as long as you wish – Whereas, there is no certainty to tenancy control beyond your rental agreement term when you’re renting a property.
· Generally, you can do whatever you want to with the decoration and the external environment, and all improvements are probably going to develop your lifestyle and enhance your home’s value. However, you have limited options in personalizing the property when renting.
Deciding to Own a Property
Buying your first property is a very exciting process. It may seem complex, especially if it’s your first time. However, you can get plenty of support and assistance from professionals.
A well-selected property will definitely increase in value over time and the balance of your home loan will constantly decrease as principal repayments are made. It may seem difficult right now, but soon your hard work will certainly pay off and you can enjoy your life without a bond or paying rent.