If your goals are less financial and more experiential in nature, you can still find what you’re looking for by owning your home - especially because there are several types of mortgages that cater to different needs. After all, financial and practical benefits are not mutually exclusive. Let’s take a look at some of the areas of overlap that make home ownership a great decision.
Stability
When paying on a mortgage, most experts agree that you should plan on living in your home for a minimum of five years before it makes good financial sense. If you’re looking to put down roots and start the next phase of life, buying a home is a great step in that direction. No more moving from one lease to the next every couple years!
Home ownership can also mean financial stability because the price of your home won’t change from month to month. Sure, things like taxes and insurance may fluctuate over time, but the price you are paying for your home won’t change – even if your home’s value increases.
Control
You are going to have a landlord if you live somewhere that you do not own. The decisions you get to make about your own living space are likely to be limited, and, in fact, you may even be asked to make some changes that conflict with your own comfort or preferences. By not having ownership, you forfeit some of the control you might’ve had otherwise. For example, many places won’t allow tenants to own pets. If you owned your home, however, you would have the freedom to make decisions like these, as well as upgrades and improvements to your home as you see fit.
Similarly, if you are dealing with a landlord, your monthly living expenses are subject to change. You may enter into a lease initially, but once the term on that agreement has been completed, your landlord has every right to change the monthly rent s/he wants to charge. Those cost increases get passed down to you, the tenant. At times, you may even encounter a landlord who does not intend to renew a lease. This means that when your lease is up, you will be expected to vacate.
Equity
Ownership means being invested. This is true in a financial sense, of course, but there’s also something to be said for the regard a homeowner may feel for his/her community. By staking a claim and becoming an owner, a person is likely to feel a greater connection, deeper interest, and higher regard for the area where s/he has chosen to live.
Should You Look at Your Home as a Purchase or an Investment?
The difference between a purchase and an investment doesn’t have to be complicated. For the sake of this conversation, we are defining an investment as a purchase made with an intention of yielding some return in the future. Home ownership can be more expensive than renting, especially earlier on. However, with responsible home ownership, there is a very real chance of financial gain. With renting, the best you can really hope for is that you get your deposit back. For anyone focusing on their financial health, home ownership really is the easy choice to make.
Choosing the Right Lending Partner
If you are looking to make the move, it’s important to make sure that your mortgage is created with your goals in mind. Taking out a fixed, low-interest mortgage from a trusted financial institution is the best route. If home ownership is on the horizon, you need an experienced partner that can help you navigate the obstacles ahead. Remember, purchasing a home is possible, affordable, and hassle free with First Service.