While it is sometimes easier said than done to “stop renting and buy,” there is a lot to be said about the benefits of home ownership. As a Canadian realtor and homeowner, I believe that if you are in a position to buy, do it. Owning your home vs. renting from a stranger or someone you know will pay off in the long run. Here’s why:
- Stability
Number one, hands down, has to be stability. Though you have some rights while renting, there may still come a time when your landlord decides to sell their property, leaving you scrambling to (hopefully) find another rental unit in your city. With rising costs, this is certainly not an ideal situation.
- Pocket Additional Equity
Another bonus of homeownership is the value of equity. As your home’s value increases, you are essentially pocketing the additional value as equity. If you choose to sell one day, this value becomes capital gains that go straight back to you!
- Costs Are Not That Far Off
After you build up a reasonable downpayment to purchase your home, you’ll find that your monthly mortgage payment may not be that different from your rental payment. This is helpful for those worried about monthly ownership costs, but note that each location varies.
- Personalize
When you own your own home, you can personalize it any way you like! Paint the walls, and change the flooring; the world is your oyster. Also, no more fears that your landlord will see those claw marks on the wall from your furry friend.
- An Asset for Life
Once you pay off your home, it is your asset for life that you can pass down for generations if you choose. Owning your own home is one of the best investments you can make in your future.
Overall, though it certainly requires a hefty downpayment to purchase a home, there is a reason: they’re valuable and worth it in the long run.