There are several possible advantages to buying your own home, such as security, being able to personalize where you live, and hopefully greater wealth if you are able to make the repayments on a home loan and own the property outright long-term.
1. You can have your own home!
When you purchase your own home, you have the freedom to paint, renovate and landscape at any time without needing to ask permission from your landlord or being concerned about breaching a rental agreement. You will have a sense of security and wouldn’t have to worry about moving to a different place time to time.
2. Wealth creation
Depending on your property and the market in your local area, it may increase in value over the long-term, at a rate greater than inflation. Make sure you carefully consider all aspects of a property’s location that may affect its value and organize a detailed inspection before you buy. Factors such as whether it’s in a flood-affected area or the possibility of further residential and commercial developments nearby could affect the property value. You may want to get in touch with a professional to help you navigate some of these matters.
3. Enforced savings with a mortgage
Having the discipline of making regular mortgage repayments is one way to force you to save money by putting it into your home loan instead of spending it. Your principal loan repayments may, in effect, act like a forced savings plan. The benefit of this is that part of your monthly repayment (the principal) is going towards paying off your own property, rather than your landlord’s property.
4. Financial and personal security
Owning your own home can give you more of a sense of security than renting. Living in your own place means that you are not at risk of having to move due to a rental agreement finishing or your rent becoming unaffordable. Plus, owning a home can be a valuable asset during retirement. You may also be able to use the equity in your home to invest in another property, organize some home renovations or consolidate other debts.
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