Did you know that purchasing a home can increase your net worth? Stay with me as I reveal with you the hidden truth on why you should buy rather than rent.
Now, before we move forward, I have a disclaimer, everybody has their own thing going on and reason why they’re probably renting rather than buying. But I’ll just give you some tips on why it’s better to buy than rent.
1) Equity
First reason, equity, equity, equity. Owning your home is basically a forced savings, when you pay your mortgage on your home, you’re chipping away the mortgage that you have. What you put in is how much you own in that home and that’s your equity, that’s where your networth come in place. The more that you pay a mortgage the more of the home you own, rather than the bank. So, because of that, that’s where your equity comes in place, and that’s where your net worth comes in place.
2) No Rent Increase
Secondly, you don’t have to worry about rent increasing, this is major. From time to time, landlords increase their rent. Rent has also increased during COVID. If you have your own, you don’t have to worry about rent increasing. Your mortgage stays what it is until you agree with your bank to go ahead and increase payments.
3) Ownership
And thirdly, it’s yours. Once you purchase a home, it creates a sense of appreciation. And it’s also good for your family. You can make changes as you wish to your home without having to go through a landlord and other formalities. Its actually yours. You could call it “my home”. So that’s the 3 reasons why it’s better to buy than rent.
Summary
I just want to recap real quickly. The first reason is equity. The more you pay off your mortgage, the more equity you have in the home, and the more you own the home. And that’s where it comes down to your net worth, [on] how much you’re worth. Secondly, you don’t have to worry about rent increasing. Your mortgage stays what it is. You don’t have to worry about your landlord coming to you next month saying, “Hey, I want to increase the rent.” You just pay your mortgage, what you already agreed to. And thirdly, it’s yours. It’s something you can call your own. You can make your changes, your family is there, and it’s stable. It’s good for family. So that’s the three main reasons why it’s good to buy rather than rent.
Talk soon!