Anyone in their early adulthood has heard about how we, as millennials, are choosing not to buy and have created the lowest rental vacancy rate in nearly 20 years. It could be because of the crippling student debt many young adults face. It could be because we have a habit of racking up credit card debt. It could be that we just aren’t ready to commit. All our hesitancy towards homeownership enforces the idea that our generation is a financially irresponsible group who will never retire. Who really wants to sit down and think about the state of their IRA? Or how the stock market is going to be affected by a generation’s tendency to be financially-late-bloomers. Sounds like a blast. While renting allows benefits such as the flexibility to jump ship after a lease period and freedom from maintenance costs, buying a house stands to be just as affordable as renting, yet proves in the long term a more sensible choice, and not just financially.
1. Putting Down Roots I am one of those people that has a habit of making myself at home. That being said, there is something about living in a rental that prevents the space from ever truly being yours. You know someone just moved out and, in 12 months when your lease is up, someone else is moving in right behind you. It can feel transitionary, like that tomato plant sitting on your porch that’s still in the plastic carton from the store. There is something to be said for having your own home and planting a proper garden.
2. Moving Is the Worst It is an expensive and onerous activity. If you are renting and never feel at home, you are probably more inclined to move after every lease or two. It’s surprising how expensive it really ends up being to move, even just from apartment to apartment. Application fees, security deposits, pet deposits, moving trucks, packing boxes, and inevitably losing half your dishes (still not sure how this one happened) all add up quickly. Find your dream home and those yearly moving expenses from the past just bought you a redecoration or remodel.
3. Living the Way You Want Speaking of redecorating... The most recent lease I signed in a rental was in a house that had been painted a shade of green reminiscent of dying grass. You could probably get away with painting a single room in a rental. It’s unreasonable, though, to fix exterior paint, ugly cabinets, and dated bathrooms that may have been ehhh at first, but you now really hate. It seems silly to invest time and money when you’ll live there for a short period and you’ll never see a return on it. Not to mention if you start knocking down walls and slapping ugly green paint on the outside of your rental you probably aren’t getting your security deposit back. Buying a home not only gives you the freedom to remodel however you want but you’ll actually see some of that money work for you if you start considering the staying power of your decorative choices as a future investment.
4. Building Equity Every month when you write out your mortgage check to the bank, you own more of your house than you did the month before. When you finally pay your mortgage off, you own your home outright which means you don’t even have a monthly rent going forward. I realize that having a mortgage paid off sounds like a huge leap for a first time home buyer. However, even if you move before paying off your loan, ideally you’ll have built up equity that can serve as a down payment on your next house rather than saving all over again. On the flip side, if you plan to stay long past your mortgage has been paid, you’ll have a more sound retirement plan that, not only entails a home owned free and clear, but likely a savings from the years you had after your mortgage was paid off.
Buying a home is a wise investment that can help you towards a better future. It can be scary and there are certainly scenarios (eg. short term living assignment for a work project) where renting is favorable. If you’re serious about having domestic tranquility and not wanting it transplanted every time your landlord raises the rent, buying is typically a smart move. Financially, buying a home represents one of the biggest steps you will take in setting up a stable future, and when you do decide to take it, do some research. Assemble a top-notch team for the home buying process, it will be invaluable.
Author:Angela Balthazar Phone: 727-421-0272 Dated: October 31st 2017 Views: 717 About Angela: ...
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