Commitment can be scary. But committing to buying a home can actually benefit you more in the long run. Although making such a serious, long-term financial decision can be somewhat terrifying at first glance—and rightfully so—there are many reasons you’ll thank yourself for buying versus renting. Here are a few.
It’s money well-spent.
Think of all the money that you’ve spent on rent over the years. $1,200 a month in rent over the course of a decade amounts to a staggering $144,000. All of that money could have gone toward repaying the debt of a mortgage on your very own home! Every mortgage payment you make is an investment, lowering your debt and raising the equity of your home.
Renting a home can be unpredictable for several reasons. For one, as a renter, you’re up against the constant threat of rising rental costs. As a homeowner, you’ll ideally be paying into a fixed-rate mortgage, which will mean your monthly mortgage payment will be the same amount each month for the duration of the loan. Even with an adjustable-rate mortgage, there will be a fixed cap on how much your payment can increase over the life of the loan.
In addition to stable costs, home ownership also affords you the peace of mind that you won’t have to constantly move. Landlords can be unpredictable. As a renter, you may be asked to pack up and move out at any given moment. As a homeowner, however, you can plant your roots and truly make a space your own.
When you put down roots, beautiful things are able to grow. Owning a home gives you the freedom to create the space you’ve always imagined for yourself. No more asking the landlord for permission—you can modify and make improvements to the home as you see fit. And, the best part is, those improvements don’t just look nice—they increase the value of your home.
The takeaway: Buying a home is a big commitment, but it has huge perks. It’s a great investment that can save you a lot of money. Not to mention, being responsible for a space that’s all yours provides you with a renewed sense of freedom and pride. Buying versus renting is the gift that keeps on giving.