Both renting and owning a home each have their own value, but there are several distinct financial benefits that lead us to believe owning a home is the better choice when it comes to investing in your wealth.
You build equity in your property each month that you own a home. This means that with each mortgage payment you make, you own a little bit more of your home than before. When you rent, 100% of your rent payments go back to your landlord and any renovations or investments you make in the property benefit the landlord, while you remain a tenant with no equity in the property. Whereas when you invest in a property of your own, any resources you put into the property directly benefit you (the owner) by increasing your equity in the property and the property value of your home.
By buying a home, you invest in and build your own family’s wealth, instead of someone else’s. Your credit score is impacted positively when you prove that you have the ability to pay off a variety of loan types. By paying your monthly mortgage payments on time, you can actually build up your credit score faster than you would when renting.
Another persuasive reason to own is that mortgage payments are often cheaper than the average apartment’s monthly rent. Depending on the city you live in, you could take on the mortgage of a 3-bedroom home for the same monthly price as a 2 bedroom apartment. Not to mention, monthly rent payments have been on the rise since 1990, meaning that your rent payments could increase year after year. Mortgage payments, however, will be locked in until you decide to refinance.
If you’re considering moving and are looking to purchase a home, contact Highcrest Home Lending to ensure you are getting the right loan at the lowest rates. We will be with you through the entire process to ensure that you are making the best choices as you invest in you and your family’s future and wealth.