It can be a challenge to really determine whether buying a home is more beneficial to you or if renting is the way to go. They are both important decisions to contemplate, especially over the long term. When it comes to potentially owning a property, it’s usually one of the largest investments people make in a lifetime. And it can also one of the most rewarding. But what’s best decision for you?
Here we break down some of the main differences to consider when it comes to mortgage vs. renting.
Benefits of a Mortgage
Becoming a Homeowner
There’s not much explanation that’s necessary when it comes to the benefit of being able to call a home yours and officially own it after completing and paying off your mortgage payments. Sure, it may take time, but in the end, your hard earned money is being used to contribute to something that you can call your own.
Increase in Value
With a mortgage, and eventually with home ownership, you can take advantage when the market increases, along with the value of your home. If the value does increase, you can use the equity for a potentially greater investment, such as a larger home in the future, or even a cushy retirement fund.
Can Create Your Perfect Space
One of the best advantages of contributing to a mortgage instead of renting is that you get to personalize your home as you please. You have the freedom to renovate it and enhance the value of it without having to deal with a landlord.
When it comes to renting, it’s often a favourable choice for those looking to have more flexibility. Commitment can be a scary concept for some people, and renting can provide that option.
No Maintenance Fees
Although when you rent, you don’t have much freedom to customize your living space, it also means you won’t have to pay for much maintenance fees, such as repairs and broken fixtures.
Unaffected by the Market
Although your rental fees can increase each year, you can take comfort in knowing that any dips and dives in the housing market won’t affect you.
A home mortgage can be a big step – after all, it is a big investment. But when you look at the long-term advantages, it really can end up being one of the best decisions you make. So if you’re struggling to determine whether a mortgage or rent is the right path for you, consider each of these points and focus on the future and where you can see yourself being most happy.