Achieving career goals, being a successful entrepreneur, getting married and having kids are one among the many desires that is ingrained in a human being. But it doesn’t end there. For most of us, we feel it is incomplete. Somewhere in our mind, there is an alter-ego peppering us to go for more and more.
So, what do you think is so important in our lives that we cannot afford to take our mind off?
The answer must be quite obvious to you all. It is to be a proud owner of a house. Now, some of us have different priorities in our lives that we want to focus on rather than just working hard on buying a new property in the city where you live. In other words, some of us are contented in just living in a rented house. But others don’t think that way. They prefer buying a new house. They find more benefits in being a house owner rather than living in a rented apartment.
Let us look at the 10 benefits of owning a house rather than renting:
#1. You don’t have to face the wrath of the landlord
The main reason for people preferring buying a house rather renting it is to avoid facing the wrath of the landlord. Imagine if the landlord were to come to your place in the middle of your family quality time, it would be irritating, wouldn’t it? A landlord can create troubles for many reasons like not allowing you to place any wall hangings, or bring any changes to the looks of their house. These situations make it frustrating for a tenant to live there for a long period of time.
The best way to avoid dealing with annoying landlords is to think of buying your own house. It can be done by saving money and approaching the right banks for home loans.
#2. Save Taxes
Buying a new home allows you to save taxes. New homeowners with home loans enjoy tax benefits. For every new mortgage, you incur more interest payment each month which gives you greater tax breaks. Home Owners enjoy the luxury of tax benefits as it is deductible. This benefit makes it more profitable for homeowners as they are spending less.
#3. An opportunity to rent it out
Owning a property gives you a major advantage i.e. renting it out to someone after a point of time to repay your home loan. This is possible if you are purchasing a ready to move in apartment. In doing this you are saving lots of money by letting the tenant pay your debt through monthly rent rather than spending it from your wallet.
#4. Re-Modification is possible if you are a homeowner
If you are a tenant, you require permission before making any changes to the house. It is time consuming and most of the requests are denied by the landlord. Another issue that surfaces in re-modification of the house is that the landlord might agree to do it but he will not bear the cost. Even, if it is in the landlord’s best interest.
As a result, it would simply be a waste of money for the tenant to spend all his savings for investing in re-modification of the owner’s house. Also, you may not be residing in that house for a long period.
#5. As a tenant, you will have to be concerned about the rise in house rent
Rentals increase annually and are usually set at 10% way above inflation. Don’t stay out of the property market because you are worried about the future; your concern is the best reason to get into the market. There is an underlying concern that the economic uncertainty can play its part in influencing a landlord’s mind in increasing the house rent. If you happen to get a job in a more posh area then there is a possibility of you paying even more amount for rent for a house that might not match its true value. So it is better to avoid these moments and buy your own house.
#6. The property you are letting may be sold out from under you
Renting is insecure by its very nature. It can be stressful when you expect your lease to be renewed but instead are given one or two months’ asking you to pack up and find somewhere new. And not all tenant-landlord relationships are friendly. If you get into a disagreement, you could find your “safety” threatened, and they may even go ahead with eviction proceedings if you and your landlord are in a serious dispute.
#7. You can’t settle into responsible ‘Adulting’
The longer you put off entering the property market, the harder it will be to do so. Most middle-class tenants are renting properties that they couldn’t afford to buy. One gets used to a certain standard of living, and every year it is harder to make the sacrifices needed to buy a property. Interest rates have dropped, the property market is under pressure and buyers can take advantage of current market conditions.
#8. You can sell your own home whenever you want
If there comes a time in your life where you are retiring or need some amount of money for unavoidable expenses, then being a house owner plays to your advantage. You can sell it anytime you want at a higher value than the purchasing amount for the same property. This is one of the important factors why buying a house is better than staying in a rented house.
#9. You can mortgage your own house
For a person having a family and kids who want to move abroad for their higher education being a house owner is a good thing. You get the chance to mortgage your house to the bank and once you complete spending on your child’s education, you can get the house back.
#10. You will feel more secure
If there is an eviction notice in your area, as a homeowner you don’t have to worry about buying a new home. Unless, you are a defaulter of the home loan, only then the bank authorities might send you an eviction notice. But in the case of eviction of a tenant, it is up to the discretion of the landlord to ask the tenant to leave the house at a shorter notice.
For the above mentioned reasons, it is clearer that the privileges enjoyed by a house owner are far better than a tenant renting a house. At the beginning of buying a house might appear as a tall order, but once you are in the completion stage then life becomes easier. A tenant has to just worry about factors like job and financial stability and maintaining a good relationship with the landlord.