Posted on: 17 July 2018
If you rent a house or apartment, you will have to pay a monthly fee to your landlord if you want to continue living there. The fee you pay is your monthly rent, and it covers the costs of living in the apartment or home. This money basically gives you nothing, except a roof over your head, and that is why buying a house is typically the better option if you are financially ready to invest in a house and become a homeowner. Here are a few things to understand about this if you are on the fence with the decision to buy a house.
A mortgage payment might be the same amount as your rent payment
Depending on the amount you currently pay for rent and the amount you spend on a house, there is a good chance you might be able to get a mortgage with a payment that is around the same as the amount you are paying for rent. If you can pay around the same price, why not invest in a house rather than pay your landlord's mortgage payment.
You do need to consider that there are some additional expenses when owning a home, though, that you will not have to pay if you rent. Some of these include property taxes, repairs, and maintenance bills. Before you rush into buying a house, make sure you are fully prepared to pay for the extra expenses you will have if you become a homeowner.
You will slowly build equity
One of the key differences between owning a house and renting is the way you will build equity if you own a house. When you pay rent, you are not investing your money. In other words, you will never receive a return on the money you pay your landlord when renting.
When you own a house, on the other hand, you will slowly build up equity in the house. Part of each payment you make for a house will go towards the principal amount you borrow for the loan. Each time this happens, you are building equity, and equity is an investment. Little by little, you will build more equity to a point where you own the entire house.
Buying a house can be a great way to invest your money. If you are interested in finding a house that is in your price range, contact a real estate agent.Share