When it comes to big decisions in your life, buying a home is probably one of the biggest. There will be many factors that will determine whether or not you will be able to purchase a home and get your own mortgage today. If you can’t, there are alternative options to renting. Yes, rent-to-own. Although owning is a commitment and there are responsibilities that come with this decision, don’t let that scare you into staying a renter. There are plenty of benefits to renting-to-own your own home that far outweigh the benefits to renting. Here are five reasons that you should look to put down roots in your own home:
Build equity on your own property over time. Houses tend to appreciate every year (depending on the state of the housing market) but if you have done your homework correctly, you would not have bought a house in an area where there is consistent depreciation. This equals more money in your hand than you had to initially pay to purchase the house. Think about it, your landlord is building equity on his property, the same property that you are paying the mortgage for. Instead of putting more money in his pocket, why not add it to yours?
Renting means that you are constantly paying for a property that you have no claim to. You can’t call it your own despite paying for it each and every month. Now think about if you had your own house and you were paying down the mortgage and building equity. Instead of leaving the rental at the end of the lease and having nothing to show for it, you would own the property and have the flexibility to do with it what you wanted. You could re-finance and enjoy the equity or you could sell and walk away with the equity. If nothing else, you would have a tremendous sense of accomplishment and pride that this property was yours.
Be your own boss and do the upgrades and improvements that you are going to enjoy. Try doing that in a rental – even if you could, why would you? At the end of the day, the only one benefiting is your landlord when your upgrades mean he can charge more rent or sell for a higher price. Paint, change the flooring, add a deck, add a garden, renovate the kitchen. Do whatever you want. The possibilities are endless as is the amount you could increase the value of your property.
4. Get Pets
When you own your own home, you decide if you want to have pets living with you or not. When you rent, your landlord decides if “man’s best friend” will be allowed. Just think about how happy the kids will be when you bring “Rover” home for the first time.
5. Income Potential
Having your own house gives you the chance to make some income on the side. You could rent out a room or create a basement apartment and rent it out to offset the mortgage each month. How about renting out a spot in the garage or on the driveway to your neighbours? Imaging having an extra $500 or more coming in each month to help you with your bills. You can’t do anything like this in a rental.
Ultimately, the “big” decision is up to you. Although you need to decide what is the most comfortable decision for you, be sure to take into account whether or not this step will help you get ahead or reach other financial goals. Hopefully some of these points will give you some food for thought.
If you have any questions about how a rent-to-own could help you get ahead, please do not hesitate to contact us.
Neil – Clover Properties