What are the Benefits of Owning a House vs Renting?
There is nowhere more important than home – but is it better to buy a home or rent? While some like the flexibility that renting can provide, there is a reason why so many people strive to own their own home. Keep reading to discover why it might be better to buy a home rather than rent long-term.
One of the most obvious benefits to owning a home as opposed to renting is that it is a long-term investment. Property value increases year on year and prices have skyrocketed in recent times, so buying a home can be a smart financial move to make and more so than renting which is a continuous drain on your finances. Once you are on the property ladder, you can think of buying a second home and becoming a landlord. The income from your second property could go towards paying off your first mortgage early. In Northern Ireland this popular in university towns where demand for rental property is high, getting landlord insurance NI is relatively inexpensive.
Following this point, owning a home also allows you the option to release equity when you are 55+. How equity release works is by allowing you to free up the money that is tied up in the house with interest payments being made – this money could be used to fund retirement, improve the house, gift to loved ones (perhaps for a house deposit) or simply to boost your financial health.
Financial & Life Stability
You will also find that owning a house can provide financial stability. Owning a home is helpful in terms of boosting your credit score and borrowing money, plus you will also find that your life feels more secure when you own your own home. Those that rent may have a constant worry that their landlord will suddenly increase their prices or even sell the property.
When you rent, you must abide by the rules that the landlord sets out. Typically, this means that you can’t own a pet, decorate how you wish or make any changes to the property. When you own your own house, you have greater freedom over your living space and can do what you want with it without having to worry about a landlord and deductions for any changes that you make.
It Will Be Yours After Paying Off Your Mortgage
Looking ahead, you will also own the property once you have paid off your mortgage and this means that you will not have to worry about paying for somewhere to live. This can make a huge difference to your financial (and mental) health when the time comes.
As you can see, there are many benefits to buying a home as opposed to renting and this is why people are so desperate to get a foot on the property ladder. While renting has some perks, you will find that it makes a lot more sense to buy especially in the long-term and because of the freedom that it can provide as opposed to living under a landlord’s rules.