- 1. Retire with peace of mind
- 2. Relatively easy to get financing
- 3. Customize to your heart’s content
- 4. Extra earnings potential
- 5. Great long-term investment
Many young people experience uncertainty when it comes to buying their own home.
Not only is it a huge commitment, but with the uncertainty of the economy in the year(s) ahead, quite a few people wonder whether it would be a good move to buy their own home or whether they should postpone their home-buying plans indefinitely.
However, young people should definitely not be doubting this choice: owning a home is preferable to renting 99% of the time. If you are going to buy, it is better to do it sooner rather than later.
Here are some reasons why people are embracing homeownership:
1. Retire with peace of mind
- Your home will be paid off by the time you are old(er) which means that you can retire with peace of mind.
- It gives you a type of economic security and freedom that you would never have had otherwise.
- You won’t have to worry about things like an increase in rent when you will be living on a fixed income.
- Even though it might be a rather morbid thought, you can add the house into your will as an asset so that your children are well taken care of when you are no longer around.
2. Relatively easy to get financing
You will be able to finance your home more easily.
Right now interest rates have reached a historical low so it is easier to qualify for a loan than it will be in a year or two when rates and prices have gone up.
Having a lower amount to pay towards your bond every month will also enable you to pay a bit extra in the months that follow.
This protects you against rising interest rates. It also shortens the time it will take you to pay off your loan which means you can own your home a lot faster.
3. Customize to your heart’s content
You can customize your home the way you want to. When renting you aren’t always able to decorate, paint or remodel the home to suit your needs.
When you own a house, you are free to do just that and renovate, remodel, and improve as you please. You can choose to install insulation, solar panels, and a heat pump to make your home energy efficient and minimize your electrical bills.
And you can do all of this without asking anyone for permission! It sounds very ‘
4. Extra earnings potential
You can use your home to earn extra money: if you are able to, try and find a house with additional rooms or a cottage on the property.
You can get tenants to live in the house with you, if you are up for it, or you can rent out the cottage. Some homeowners even rent out their garages if they don’t use it.
If you are not keen on having tenants on your property or inside your house, you can consider renting the space out to businesses that need offices. This will bring an extra income over weekdays and they will be out of your way by the time you get home from work too!
5. Great long-term investment
Your home can help you financially.
After all, in the long-run, the value of your property will keep on growing as the amount that you owe decreases.
Simply put, after a few years, you will be able to buy some of this “equity” back to send your children to university or to purchase an additional home.
You may also decide to sell and use the profit to buy a new home. When you are ready to retire, you might use this amount to buy a smaller property and keep your retirement fund intact.
Homeownership is never a bad idea, but it is a bad idea to leave it for too long.