Buying a house automatically makes you a real estate investor. This is especially true when you buy a property in a hot market. As property prices increase, your home equity grows passively as well. Over time, you can tap it to get cold cash when you refinance or sell your house down the road.
Apart from thinking about investment, there are other practical reasons you should own a property. Here are some of them:
Indefinite Right to Stay
With a house that you own, you’d be able to live in it for as long as you want. The case is different when you rent, however. Your landlord can decide to rent it to someone else or sell it, forcing you to look for another place of residence. The case could be different, of course, if there’s a contract involved.
Fixed Monthly Payments
Unlike rents, mortgage payments can be made fixed. City Creek Mortgage noted that you can do this by securing the best mortgage rate in Salt Lake City or Phoenix that doesn’t adjust. In a way, you can lock in a certain price and save yourself from uncontrollable market forces like inflation.
A portion of your mortgage payments, which goes to cut the principal of your loan essential, builds equity in your home. As home equity is an illiquid asset, your wealth would grow as your loan matures.
Most rental properties share walls with adjacent units. If you buy a detached single-family house, your property wouldn’t be a part of a large residential complex. You’d get to have your own backyard with more living space for your growing family.
Numerous Home Improvement Opportunities
One of the limitations renters have is the lack of design freedom. In most cases, your hands would be tied when it comes to home improvements. When you’re the actual homeowner, you would have significant latitude in decorating your space.
Indeed, home ownership offers more than just helping you gain a foothold in the real estate market. With a favorable interest rate, you can realize the greatest American Dream without making your monthly budget a nightmare.Tags: Home Improvement, Owning a House, Passive Investment