For many people, purchasing their own home is a dream. In fact, it is still part of the fundamental Australian dream. People generally equate home ownership with success in life. Unfortunately, as average house prices continue to rise, it can be harder to realize that dream than it used to be.
But, there are five good reasons why buying a home makes good financial sense, better than renting. You should remember these and keep fighting toward that dream.
1. It’s An Investment
House prices have been rising steadily for many years. While there are times when the market dips, if you own your home for the long term it is likely to increase in value. That improves your financial status and makes it a viable investment.
It should be noted that you don’t need to buy through a real estate agent. It is possible to get some excellent properties through your local auctioneer. You simply need to do all the necessary checks first.
2. Financial Security
When you own your own home, you’ll spend years paying the mortgage. But, one day the property will be yours. At that point, you’ll need significantly less money to live and can enjoy additional luxuries in life or simply retire.
Your property gives you the financial security you need to tackle lifestyle changes.
3. It’s Cheaper!
Buying a house is expensive. However, the monthly mortgage payment is often less than renting an equivalent size property. While you need to do your own maintenance on your property, in the long term you own the house and pay no rent. That saving quickly adds up and makes it dramatically cheaper than renting, especially in your later years.
4. Gives You Space
Once you own a property you can increase the available space by adding extensions or changing the layout. This is easier and cheaper than moving. It’s not just a matter of space. Owning your own property gives you the freedom to make changes that suit your lifestyle and budget. That’s not the case when you rent and any improvements are likely to increase your rent.
The alternative is to move and that incurs significantly more costs.
5. Gives Financial Backing
If you’ve ever come across a promising investment and need money to invest you’ll quickly realize that it’s much easier to get funds lent to you if you’re a homeowner. You can release equity or simply secure a loan against your property and undertake your investment.
Of course, your investment may not be favourable. But, you have the option to try which can increase your overall wealth and financial security. Even if it fails you’ll have the satisfaction of having tried. That can be a lot harder if you’re renting and don’t have anything to secure the funds on.
It is also important to remember that owning a property makes you feel better about life in general. That will help to maintain mental health and your quality of life.
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