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In the modern world, few people believe that they can afford to buy their home. Low incomes and unstable careers mean that many young people feel that they can’t get on the property ladder. These people end up renting for years on end, rather than ever taking the plunge and buying a property.
Buying a property is a huge commitment, and this puts many potential buyers off. There are many reasons you should consider investing in your home. Here are just five damn good reasons to get on the property ladder sooner rather than later.
1. Over Time All Property Gains Value
The property market dips and peaks just like every other market. That is normal but doesn’t mean that buying a home could lose you money. Whilst short-term dips in the market are irritating, they don’t define the general trend of property. The bigger picture shows that over time all property gains in value. If you are to buy a property this year and sell up in twenty years time, you will have made a rather large profit off the property. The price of the property always grows. By looking at how much properties have gained before you can predict how much a certain property will gain in value later.
Related: Real Estate Myths
2. Renting Wastes Valuable Money
Spending years on end renting is a huge waste of money. Few people think about where their rent money is going. Every month you are giving away your money and getting little in return. Renting is fine for short-term housing solution as it offers you the flexibility you want. But renting for too long means you throw away money, which you could have used to create financial security for yourself. The only person who benefits from you renting is your landlord. He or she is making money off you on a monthly basis just for allowing you to stay in his or her property. Don’t fall into this money wasting trap.
3. Your Own Home Gives You Freedom
When you rent a property, you can’t make any changes to your home. Should you want to decorate or make structural changes, you have to ask your landlord. What renting means is that you have no say in the place that you call home. Buying your property allows you the freedom to create a place that you want to call home. You can do anything you want to the property you own.
4. Mortgage Repayments Are Cheaper Than Rent
People tend to think that renting is cheaper than buying. Once you have made your initial down payment on the property, your monthly payments will be reasonable. In some case, mortgage payments are much cheaper than the average price of rent. You should take some time to look into how much your mortgage repayments will be and weigh up whether this will save you money in the long run. Buying a home can mean you pay less out every month than you did when you rented a home.
5. Buying A Home Means Building Equity
Each time you make a mortgage payment you are putting into your fund. Buying a home means building equity, which is then your to use as you wish. Having equity offers you the opportunity to have financial freedom. For example, if in later life you decide you want to take a world trip, you can release some of the equities in your home and receive a lump sum. In effect you are reselling some of your home to your mortgage company, which means you have the money for upgrades or to do with what you wish.