The question of whether you should own or rent your home is an old one. In some countries, such as Germany or Sweden, renting is the more popular choice. This is often because it’s easier and tenants are well protected. However, in the UK, many people wish to own their home, instead of renting. There are both benefits and drawbacks to renting and to owning. Although some are happy renting a property, other recognise the benefits to purchasing their own home. Have a look at some of these great reasons to buy a property, whether you get a mortgage or you’re lucky enough to pay with cash.
One of the best reasons to buy a home is the security of having somewhere permanent to live. Of course, unless you can pay outright, it will be a while before you own your home properly. You still have to consider how to meet your mortgage payments so that you can keep your property. However, as long as you’re making your mortgage payments, you won’t be asked to move out. Eventually, your home will be yours and not the bank’s, and you’ll be completely secure in your home. If you’re renting, your landlord could end the tenancy, and you’ll have to find somewhere else to live.
If you rent your home, there will almost always be limitations to what you can do with it. Some long-term tenants develop good relationships with their landlords and can have more control. However, most people have to follow rules concerning decoration and other choices for the property. You might even have to live with furniture the landlord has chosen. Owning your home gives you much more control. You can redecorate, renovate, and more whenever you want to. You’ll be able to increase the value of the property by making improvements.
Borrow Against Your Home
Owning a property gives you an asset you can borrow against. You don’t need to own your home outright to borrow against it either. If you’re still paying off your mortgage, you can access loans for homeowners. It can make it easier to borrow because your credit score might not be as significant. Many lenders are willing to give loans to homeowners who have less than healthy credit scores. Loans can often be into the thousands and can help to pay for the upkeep of the property.
Owning a home will sometimes save you money, although it depends on several factors. Owning a property does mean you have a variety of expenses to pay for. You have to maintain the home, which your landlord does if you rent. However, you can save money on some expenses too. You won’t have to move home and pay agency fees, for example. Your mortgage payments could be lower than your rent too. Before buying a home, compare the costs to see if you would be better off.
There are some great benefits to owning a home over renting. However, it’s not for everyone, so you need to weigh your options.