The hefty upfront costs of home ownership make some people prefer renting a home for life rather than purchasing one. However, there is more than one good reason why it makes more sense to become a homeowner.
Nowadays, many home developers offer new housing at very low mortgage rates. In Utah, for instance, you will never run out of companies that offer new homes for families at affordable rates. New home construction in Salt Lake City has grown by leaps and bounds in the past few years. More and more people are open to the benefits of home ownership, and here are some of the reasons.
- Home ownership today involves affordable mortgage fees. Thirty-year mortgages today are very affordable. A monthly mortgage payment is at an even lower rate than a monthly home rental fee.
- Your house is your property. When you rent a house, you have to follow certain rules the landlord has set. On the other hand, living in your own home allows you to live without such limitations. You can have a pet, install a pool, and anything else you would like to do to your property.
- You have access to credit. When you own a house and have a mortgage, credit bureaus receive a report about your credit status. Whereas if you rent a house, your access to credit is limited.
- You have access to equity. If you own a home, there’s equity that you can tap if necessary. Having equity does not only help you pay for your emergency expenses or home improvements, but it also allows you to get a loan.
- It keeps you financially healthy for the long term. Renting a home involves a lifetime outflow of cash on your part. This is not good, since rental rates rise over time. If you choose to purchase your own home now, you are assured that at some point in the future, you will own your property.
While renting a home makes more sense to you at this point in your life, you should evaluate the relative costs and benefits of these two options now. Owning property gives you the future and security you need.