In the recent years, we have seen a number of millennials questioning the well-rooted thesis of home ownership. Could they be right? It probably depends on the perspective, but the benefits home ownership brings along cannot be denied. Even if sometimes some circumstances speak for extending the rental lease for another year or two, homeownership is still the dream of the majority of today's buyers, and they can’t wait to leave behind their rental unit one day.
What You Get With Buying A Home
Buying a home is still the preferred option as it means building equity and getting back something from your large investment. With every mortgage payment, you own more home and owe less to the lender. The resale value will probably increase over the years, and you can objectively sell it in 10 or 15 years for a much higher price than you paid for it initially.
Buying a home may cost more money in the beginning than renting, e.g., the land transfer tax, property taxes, closing costs, maintenance costs, etc., but eventually, the costs will decrease as you work towards getting rid of the mortgage. Buying a home gives you also the liberty to do with the property whatever you want. You don’t like the porch or the floors? You can change them, while renters would have to beg the landlord to do it. Buying a home should be your definite goal, but you certainly have to wait for the right timing and a home you absolutely love before you invest your well-earned money. If you want to know how to land your dream home, click here to find out.
When Is It Better To Extend The Rent?
The real estate market doesn’t always go into our favor and sometimes we simply lack the means or luck to land a perfect home. Don’t let your desire for home ownership drive you into buying a random home just because you decided it’s time to become a home owner. If the properties you like sell before you have a chance to submit an offer and you don’t like any other listed properties in your price range, maybe it’s better to wait until you find the perfect fit for you, even if it means renting for a couple of more months.
We all dream of becoming a proud homeowner, but with a tight budget, it can be tough to find one that is at the same time affordable and of the right size. If you can afford a one-bedroom, but have a spouse and three kids, you're better off with a spacious rental than a tiny condo in your name where all of you would be bumping into each other all the time. Work on your finances and try to reduce your debt to be able to afford a mortgage that will cover for a home you really need.
Renting should be regarded as a short-term solution given that the rental costs are not fixed, and rent increases are pretty common. The landlord may also decide to sell the unit or move into the rental, which would mean that you’d have to leave and find a new place to live. When you buy a home, you sign up for a fixed monthly amount that doesn’t change over the years and you only have to move if YOU want to.