Are you debating renting versus buying? Debate no more…homeownership is an excellent investment! It is one of the best ways to build wealth, secure housing for retirement, and work towards a stable financial future. The decision to continue renting or to invest in yourself and purchase a home can be daunting, but I am here to help!
Invest in You!
This is probably the biggest benefit for homebuyers. If you can afford the downpayment, buying a home is investing in your future. Instead of essentially throwing your money away on rent monthly, as a home buyer you are paying down a mortgage. This will put you in a great position in 30 years when you outright own a home and no longer have monthly rental expenses. Imagine the financial freedom that would come with not having a mortgage or rental payments!!
As a renter, you are at the mercy of your landlord creating instability. Whereas, being a homeowners allows stability. You will never have to worry about raising rent costs, unplanned moves, or relying on a landlord to fix your home repairs. You are in complete control of your environment! And that feels pretty amazing!
As a homeowner, you can deduct the interest paid on your mortgage, property taxes, and any private mortgage insurance (PMI) payments. Whereas, renting, your rent goes to the landlord and you won’t see any tax benefit.
Research has shown that homeowners are more likely to get involved in their neighborhood and local community. This allows you to invest in not just the house, but in an entire community to create a safe and stable environment.
Are you Ready Financially?
Are you in the right spot financially? Do you have the down payment for a home? If you answer yes to these, homeownership is an amazing investment in yourself and your future! With a good credit score, low debt to income ratio and stable income, you too can be a homeowner.
But, if you aren’t financially independent, you have a great deal of debt, or you don’t have stable employment, putting off homeownership might be the best decision. In this case, keep renting and spend some time focusing on paying down debt, improving your credit score, or saving for a downpayment. You’ll be amazed how quickly you can get to a financially independent position if you put your mind to it.
I know it is a big choice, but it could be one of the best things you do for yourself and your future! If you have job stability, geographic stability and financial independence, homeownership is a great investment — GO FOR IT!
Check out this calculator to help determine if you can afford a mortgage.