A lot of people consider it their ultimate dream to buy a home. Given the potential benefits of home-ownership, there is nothing wrong with this desire. In fact, it could give a massive boost to your finances and lifestyle. Some of the reasons why people prefer to buy instead of rent are discussed below.
Whether you realize that or not, purchasing a home is an excellent long-term investment. While paying monthly mortgage payments, you are actually relieving yourself of the loan amount. On the other hand, the price of the property will eventually increase over time.
This essentially means that you are making money for living in your home. If you stay in a property until the completion of the mortgage plan, you can make a lot of profit. In case of a rented property, you don’t get any return for the payments that you make every month.
It is possible for a homeowner to deduct mortgage interest and property taxes in his/her annual tax return if they’re working or earning a living from the home. However, you must itemize your taxes to qualify for utilizing these tax benefits. Basically, the amount of your taxes must be more than the standard deduction granted by the government. See your Accountant for more details.
In contrast to that, the person living on rent will have to pay all these amounts to the landlord. The savings made from these tax benefits make buying a much better (and cheaper) option than renting.
Fixed Price Deals
If you select a fixed-rate mortgage while buying your home, your monthly payments will always remain the same. This gives you a lot of budget stability because the mortgage payment is the major chunk of your housing payment.
On the other hand, rent is much likely to increase every year. The annual notice from your landlord to increase the rental amount will never let you settle (financially). This continuous doubt can prove to be a massive hurdle in your financial growth. Therefore, it is always preferable to OWN your home.
The Home is ACTUALLY Yours
Owning your home means that you are the ultimate authority of the place. You can change anything you want to, how you want to, and whenever you want to do it. Whether you want to replace the flooring or create a new room, it’s up to you to make the decision.
This kind of freedom is NOT possible in a rented home because your landlord is the owner of the property. You will need to ask him/her for permission even if you want to change the color of your room.
When you make a mortgage payment of your property, you are actually investing in your home. This is because that payment is paying off your loan every month. It may take a long while (25-30 years) but the mortgage payments will eventually come to an end. At that time, you will be the sole owner of your property.
In case of renting, you will NEVER be the owner of the home and the monthly payments won’t ever stop.
If you want to find homes for sale or apartments for rent in Ottawa, Armin Khamsehzadeh is the realtor® you should contact.