Home Buying: Considering Owning Your Own Home?

There are so many factors to take into consideration, such as to rent or buy. One of the first decisions that need to be made, is whether you would like to rent our a residence or to purchase a new one. There are pros and cons to both aspects, which we will discuss.

When it comes to renting, there is a lack of responsibility and an increase sense of freedom. A landlord will often maintain the property, with renters generally being free from performing maintenance duties – even though there is a reasonable expectation of care that is expected of a tenant. There’s also the option of shared access to “unaffordable” amenities in some rentals (generally apartment complexes and the likes), such as swimming pools, spas, fitness centers, conference facilities, club rooms, and, at times, even planned community events. Renting is also considered a short-term commitment – rental and leasing terms are at times easier to get out of, versus owning a home (homeowners, on average, will stay in their home from four to seven years before moving again).

As for owning your own home, it comes down to desire – the desire to simply own your own piece of space, a space that you can change and fit to your current needs and/or preferences. Overall, there are seven reason to owning your own home:

  1. Tax breaks
  2. Gains
  3. Equity
  4. Savings
  5. Predictability
  6. Freedom
  7. Stability

Your home is the largest financial asset within your investment portfolio and is the traditional starting point for the accumulation of wealth.

In conclusion, buying a home should be seen as a long-term investment, which provides equity accumulation and many tax periods over an extended period of time. It is not a quick-in and -out type of investment, but it can be one of the safest investments out there.