You may have heard the news. For those hoping to purchase a first home, it’s a buyer’s market. Following the housing bubble of just a few years ago, the market has yet to fully rebound. That means there are more houses than folks that need them. In many markets, these houses are selling for half, or less, of what they may have sold for 10 years ago. And the bar isn’t set too high. For those with steady employment, pre-approval is yours with just a call to your bank. Many cities and municipalities offer grants and tax incentives to new homebuyers, to get good people into empty houses. It’s good for their tax base, for crime rates, for the culture and quality of life of their citizens.
So why aren’t more people jumping at the opportunity to buy? Some people don’t want to be tied to a mortgage. They enjoy the freedom of renting. Others are simply worried about the financial commitment. Still, others have never considered homeownership as an option for them. Can they handle it? I’m here to tell you can. Take a look at Homestart’s first homeowner’s page. This is just one of many financial incentives to make it a little easier to get you the keys to your new place. Think about it. You’ll likely never see a chance like this again in your lifetime. Here’s how your life can change by owning your home.
- Savings. Because your mortgage is likely to be so much less than what you would pay in rent for the same property, you’ll be able to save or spend your extra cash on other things. I live in a connected row house, and my mortgage is $506. My neighbors pay $1150 a month, to rent a nearly identical property. With the money we save, my wife and I have been able to make major renovation changes to our home which helps us build….
- Equity. When you rent, your money is gone forever. But when you pay your mortgage, you gain equity, the stake of your house that you own outright. This works wonders for your credit, your ability to secure another loan in the future, and your peace of mind. When you own your home (especially when it’s paid off) you have a big safety net in the event of job loss or other emergencies. Some people are able to take a lot more time to do things they enjoy, without having to worry about making money all the time.
- Enjoyment. Homeownership is a big, grown-up decision. But it’s one that makes you feel good. If you have a house that you can easily afford, you’ll enjoy making it into the home of your dreams. You’ll be able to establish roots in your area. You may even find that you want a second house to rent out to someone else in the future. You’ve bought yourself peace of mind and options.
Homeownership is a boon to many. With so many houses on the market, it’s easy to find the best place for you. It’s a big decision, but the rewards are great. Why not look into the possibility for yourself?
Great post. I really wish people would stop seeing a mortgage as a burden, when it really can be an opportunity if you want. We are in a similar situation to you. Our mortgage is teeny tiny compared to what we can earn in rental income (I’m assuming you could rent your house out for similar to what your neighbour pays)We’ve been travelling for over six months whilst our tenant pays our mortgage and gives us some spending money. Owning your home is never a bad idea as long as you buy for the right price.
You are right the housing market is hot right now. My sister just purchased a home for $75,000 that sold years ago for $300,000. I can’t imagine renting because of choice, for I don’t understand the concept of making someone else build wealth at my own expense. I can’t wait to have the opportunity to purchase another home and look for one of those die hard renters to help me build wealth.
Owning a house is really beneficial. I bought my house in 2010; before that, I had some things to consider and to do like saving money, the mortgage, and other factors. What I like about owning a house is I no longer think of rentals but the mortgage, which will be nearly over in the second half of next year.
Oddly enough, I am making in-roads on getting my foot on the property ladder at the moment, not as a homeowner but as an investor: mortgage rates are very favorable at the moment in many places and with the state of major economies, I don’t see rates going up significantly any time soon.
What wonderful information. I just bought my first home in May and it has been glorious and challenging. In many ways, it has been less expensive than renting and watching the amount owed decrease is a thrill. Home ownership is truly the way to go.
We bought our home two years ago and got a great interest rate on our mortgage (3.8%). You’re right that if you buy at the right time in the right area, it’s a vastly better deal than renting. We’ve been very pleased with our house and plan to turn it into a rental property in few years.
For those looking to make a buck, it’s not a great idea to buy for a while, as demographics have the boomers selling off their homes with fewer buyers available to purchase them all. For those looking to purchase a cheap homestead to raise a family for a generation though, it’s great news!
That’s one thing I don’t understand.. why people pay such high amounts to rent when they can buy a house on a similar value!
Love your point about savings! Mortgages often turn out to be more attractive than rents if done correctly of course.
It depends upon where you are in your life, and how mobile you want to be. For my family, owning a house makes sense because we have deep roots and plan to live in our home for……well forever. If someone is planning to move around, owning a house doesn’t make much sense.
Rent is absolute dead money and home ownership can be a much better route. That being said, in certain instances renting can be cheaper but if you don’t do anything productive with the savings (invest), then its all for not.
I’ve only owned, but never rented, and I believe that so far home ownership has been the right choice for me.
I think comparing just the mortgage to rent isn’t a fair enough comparison. There are a lot more costs involved to own a home than just the mortgage, plus you have less freedom.
That being said, I think it’s an option for everyone and everyone should run the numbers for themselves!
I agree on all accounts – I tend to favor the equity part the most. I hate putting away thousands and thousands of dollars into rent without anything to show for it in the end.
I have to agree. In Belgium we get even taxreductions if we buy a home. The penthouse I bought cost me around 500 EUR in mortgage, if I would rent the place it would cost me 750 EUR each month. So it is certainly a win win situation for me.
Cheers,
Geblin
I don’t understand those who see mortgages as a burden, and even more so, use them as an excuse not to do things in life. Surely they represent freedom because they mean one has assets, one is not throwing money down the drain in rent and one, should?, have their future more secure.
Miss Tulip x