You are not getting any younger than you already are. At some point, you have to decide and one of the dilemmas you’re gonna face is the decision of what’s more practical, to continue renting an apartment or purchase a home of your own.
It makes good sense if you choose to rent when you’re not sure about the duration of your stay in a certain place.
Whether you are single or starting a family, you have to understand the pitfalls and downside of not having a residence. Let’s get straight with the argument that single people might find it hard to pay a mortgage. Your paycheck might not agree with your decision to purchase one and you should not force yourself for the things you’re not ready yet. But if you can afford to purchase, leave your worries behind. Offers from realtors are shocking homebuyers with deals that are hard to resist. There are best deals offered in the market, you just had to be patient and find them. Take the time in searching for different programs, grants, and offers.
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Think about this, a chief economist from Trulia, Jed Kolko reported about purchasing a home being cheaper by 45% compared to renting one. In his column, he stated that it is renting is one way for flexible budgeting and having a hard time paying for up-front costs. Owning a house gives you security and serves as an investment in the long term.
To better weigh options, understand the downside of renting:
Instability of renting
Renting a home for the family also means that you are living in a temporary shelter. With a 30-day notice, you will be evicted by the landlord if he pleases. He might even wanna sell the property or decide to use it for his benefit. Renting could mean that when the inflation goes up, so is your rent, in cases that your income changes, or changes in the analysis of utility. Homeowners won’t have this experience unless their mortgages defaults.
Try fixed-rate mortgages that offer stability. Homeowners may not be able to afford to buy a home upfront but fixed rate mortgages help you pay consistent monthly payments. Your paycheck or the economy won’t even count.
Renting has no Equity
Home rent and paying mortgage makes a big difference. Paying rent on a temporary shelter where your payment won’t reflect an investment in the future while homeownership makes an investment equitable for a long term. The value of your investment, the house, could even have an increase in value in the future. Your location could be an asset to the increased value of your home. It will always go up. Upon renovation, or based on the neighboring infrastructures or business, the value will surely rise up.
Apartments won’t allow any changes to their units or renovations. No painting the walls, and no changing the countertops. You’d find it hard to change the areas of the house with all the restrictions and regulations of your apartment. You are living in a house with the least personal touch. Among the regulations are the restrictions in allowing pets, or having a limited number of people.
No money growth
The real one who gets the benefit is the property owner since you, as a renter, won’t get any return on the property. Even though you pay in both cases, owning and renting, renting amounts to nothing. It’s like investing in something temporary. Why would you when you can invest in something that can be of use to you in the future.
Your money will be idle with time. the return on the property benefits will always go to the owner of the property.
The upside of homeownership
Purchasing a house will offer you growth in personal investment, equity, and security. Over time, the profit, if and when you sell the house could be used for further property investments. This means an increase in your savings account and a more stable fund in the future.
Contrary to the restrictions stated above, owning a home of your own will give you the freedom of decorating, designing, or making changes with both the internal and external house features. You won’t have to worry about a grumpy landlord always on a lookout if you made some changes in the place. The alterations will have a personal touch. You can landscape and renovate as much as you’d like to. Your home will be your self-reflection. Let them see your character by styling your home.
You can also have an option to be a landlord and generate the income you’ll get from your property’s rent. You may decide to put another home loan. Think wise not to make your investment idle with time.
Homeownership is no small feat especially when you make sure that your repayments are on time, your credit profile will improve. Your credit score increases when you pay your monthly bond. You can even save money in the long term due to possible tax deductions from your properties that generate income.
Owning a home takes commitment and hard work. You can always choose the easy way, but the hard ones are always worth it. Work for it.
Whether you decide to purchase a house or comfortable enough to continue renting, make the decision after weighing things. Think ahead. Ask advice from experts. Pittsburg CA’s real estate industry is really in a good place right now as homebuyers coming from different cities see the potential of the area for great development. One of the best realtors, Adam Barakzai, could represent your best interest and show you the best location for your future home. With connections in the world of real estate, make your dream come true and make an investment of purchasing a home in Pittsburg CA. Watch and Subscribe to our YouTube channel here. Follow us on Instagram account, adambarakzai.