First time home buyers are usually on the fence between renting or buying a condo. There are advantages to renting a condo, such as flexibility of residence, instant move-in, no permanent commitments and low to no down payment requirement. However, there are also great advantages to buying a condo or a house. So, before you sign on a lease, read the following advantages to owning your home;
- Increased net worth
Buying a condo or a house will likely instantly increase your net worth. This also brings financial advantages such as improved credit score, better lending opportunities and buying power. Buying your first home will also get you to the first step in real estate investing.
2. Tax benefits
Homeowners can claim significant tax deductions from their mortgage interest and property taxes paid. This makes buying one of the more attractive options against renting a condo. When renting, you can very well be paying the mortgage of your landlord. Mortgage payments can also be locked for a period, usually five-year intervals, so you don’t get unpleasant surprises such as raised rental rates.
3. Savings and Investment
Owning your condo means you don’t have to pay monthly rent. Instead, you pay a mortgage which will eventually go to your equity. In essence, you are being forced to save up in the form of your mortgage. And once the property is paid off, you are also free of that huge monthly housing expense. Buying a condo also gives you a very stable investment. When you need to move somewhere else, you can sell the property for a most likely a profit (as real estate properties are almost always on the upward trend) or rent it out for a steady monthly income.
4. No restrictions
You have the freedom to live, style and decorate your home. Unlike when renting, you can have the kitchen counters that you like, the hardwood floor you prefer or the built-in window seats you’ve always dreamed of. You can install power savers like solar panels and a smart thermostat, custom-design the closets and buy fancy fittings like knobs, handles and faucets. And you can always change it whenever you want. This is, after all, your home.
5. Pride of ownership
Buying your first condo or house is a rite of passage. This momentous event marks the start of our journey into adulthood. Adulting in today’s definition means taking accountability and living responsibly. Buying a property is the quintessence of adulting. It is not an easy feat, but when you do manage to hurdle the challenge, the pride of ownership and having the address to your name is life-changing. The accomplishment is a huge confidence booster.
