Buying vs. renting has always been a huge question to many Americans. Is it affordable to buy when I can rent? Let us look at the pros to buying vs. renting. One, buying can increase ones equity instantly and can be a great investment. Two, you can have the freedom to make improvements and increase the versatility and equity of your home on your timeline. Three, there is no bottomless pit where money disappears without ever getting anything back out of the investment. The key to being successful to owning your own home is to purchase within your means and grow from the ground up.
Even though the housing market is slowing down throughout the country, it can still be a great time to purchase residential property. It is a fact of life that everyone needs shelter. Why not purchase a home within your means and start building equity immediately. There are multiple options for loans in the banking world that give you the opportunity to finance 100% so there is no down payment needed. Loans like conventional mortgages, construction loans, an FHA loan, a veterans loan; or if you are already a home owner in search of buying another property an equity line of credit is available to you. Let your resources work for you to their maximum capabilities.
Many times when living in a rental there are things that you wish to change to personalize your space, but are restricted from doing. If you have a good landlord this is not an inconvenience, however many times this is not the case. If you own your home you can make improvements or adjustments as you see fit including: landscaping, remodeling, building an addition, etc. On HGTV there are shows like Sell It, Designed to Sell, and Curb Appeal that give you quick, easy and inexpensive tips on how to dress up your home and get a better bang for your buck. Check out these helps on www.hgtv.com.
Even though there has been some financial instability in our nation since 2006 when we started into a recession, there are still opportunities for people to purchase homes. Renting can be a wonderful short-term solution to housing situations, but in the long haul buying saves money and builds your portfolio of equity. Let’s just say you are paying $1,000/ month to rent a 2 bedroom house, in one year that is $12,000 out of your pocket that you will never see again. If you purchase a home and make that same $1,000 payment you will more then likely be paying down your mortgage on a 30-year loan and after the first payment you immediately gain equity that goes back into your pocket when you decide to sell your home.
If you are a first time home buyer, remember that you don’t have to start out in your dream home; rather you can purchase a residence within your means and start to make it your dream home with improvements. There are many people who want to purchase a second home. Remember that you have options to use your equity to build your equity. Choose wisely on what you purchase and it will be a great investment and not a money pit. Purchasing your own home is the best investment you can make that will give you a great return for you and your family.