Owning a home is something that many of us dream of. It’s a wish for every renter to make that big move and become a homeowner. But we know that being a homeowner can be daunting due to the responsibilities and obligations that come with. That’s why some people feel more comfortable to continue paying rent instead of buying a home. What they don’t know is that there are many benefits that come with buying a home over renting. We have rounded up 10 reasons why you should move from renting and take a plunge into homeownership:
Here 10 benefits of owning a home vs. renting:
1. Freedom and Stability
One of the biggest nightmare with renting is when you start defaulting rent. The landlord or agent managing the property has the right to displace you as they wish. That simply means you have no freedom or stability by renting. But once you become a homeowner, no one can displace you. In addition, buying a home provides you certainty on how much you pay monthly unlike renting where rent can be increased as the landlord wishes. That stability and freedom are some of the biggest benefits of owning a home.
If you want a private life, then renting is not the way to go. The landlord or the agent managing the property has the right to access the house after notifying you. But if you want to lead a private life, then you have no choice but to be a homeowner. Once you have completed the transaction for buying the property, it becomes yours fully. Anyone trying to get access it will be trespassing, and you have the right to charge them. That’s how private your life can be.
3. It’s an Investment
Owning a home is similar to investing. Unlike renting where you get no returns on the money you pay monthly, owning a home gives you value for money. The property continues appreciating with time, and that’s how the investment grows. As you pay your monthly mortgage, the value of the house keeps going up. If you decide to sell the house a few years down the line, then you will make good profits out of it. But if you choose to continue paying rent, you get nothing from the money that you pay.
4. You Build Equity
Equity is another benefit that you will enjoy as a homeowner. Equity is simply the part of the house that you own, especially while still in the process of paying the mortgage. As you pay the monthly mortgage, the value of equity and that of the house keeps going up. The best thing about equity is that you can use it to fund other investments such as the shares. That will make another stream of income that could as well help to repay the mortgage if you invest smartly.
5. Customized Benefits
As a homeowner, you can customize the space as you wish. That is another advantage that you cannot enjoy if you are renting. As a renter, you must keep the house as you found it. Any changes you make in a rental house will definitely cost you. But when the house is yours, you can do anything that you feel will make the house look cool and easier to live in. You can also beautify it as wish. These are benefits you can only enjoy when you join the homeowners club.
6. You Can Rump Energy Efficiency
Energy takes the largest share of household expenses. However, poor efficiency is always the major cause of high energy bills. But you can easily cut on the cost of energy by improving the energy efficiency around your house. Some of the measures may including renovating the house. Unfortunately, you cannot do much if you are renting. But if you own the home, you can easily make changes that will improve the energy efficiency in the house.
7. Improves Your Saving Culture
Even if you are not good with saving, buying a house will force you to save. If you take a home loan, which most of the home buyers do, you will have to commit to monthly payment as agreed with the money lender. That means you must save enough to clear the monthly debts. Therefore, you will need to forego some things and live lean if necessary to meet the obligation. At the end of it, you will have developed a saving culture which is essential if you want to be successful in life.
8. Build Another Stream of Income
Do you know that you can turn your home into another stream of income? Well, that is true. If you are living alone or with a small family and the house is big, you can rent out spares paces. For instance, you can rent out a spare bedroom or a driveway. If you have a large garden, you can rent it out to people who want to grow vegetables. All these sources that can help generate income that can boost your mortgage payment. That is a benefit that you can never get to enjoy if you are renting.
9. Lower Taxes
As a homeowner, you will enjoy the benefits of different taxes in Australia. Although home tax benefits could vary depending on your home location, you will still enjoy them. Things like maintenance cost and depreciation can help reduce your tax paybacks. They are benefits that you will never get to enjoy if you choose to continue paying rent.
10. Peace of Mind
Last but not least is the peace mind. Being a homeowner is will completely turnaround your life. You will live peaceful, especially after finishing the mortgage payment, knowing that even if things turn out bad, you have a roof over your head. That is one thing that gives homeowners peace of mind. But if you are renting, any cut in your income is likely to spell doom on your life.
Homeownership comes with a range of benefits, and these are just a handful of them. So don’t be scared to make that bond move because the benefits of owning a home in Australia cannot compare with renting in the long run.