There are many reasons why people choose to rent a property rather than buy one. Perhaps they are young and cannot yet afford to buy a property of their own, they may have just gone through a divorce or a break up or even cannot find the perfect house to buy. Whatever the case, if you are still in the rental market, this is the year that you need to make a grand exit!
Unless you have the money to pay cash upfront for a house, you will either be paying monthly rent or paying off a monthly mortgage. The bottom line is that you need a place to live and the sooner you begin offsetting the cost of your mortgage, the better!
Owning your own home also has a great tax benefit in that you do not have to pay taxes on the implicit rental you earn on your property as this is paid to yourself. The rental income that you generate on your home is more significant than you think! On the contrary, if you earn your money in another way and then pay rent on a property, you will still pay tax which can add up.
Obviously, when deciding to purchase your own home various factors need to be taken into consideration and it is never a wise decision to buy a home that your cannot afford. Experts advise purchasing a home that is no more than around 2.5 times your annual salary.
When you own your own home, you have the right to do with it what you wish (within reason, of course)! Because the home is yours, you will naturally want to make improvements as and when you can and you will end up with a living space that you thoroughly enjoy and one that has been decorated according to your own taste. Just like a good wine, your home improves and increases in value over time and you get out what you put in: all for your own benefit!
Buying, as opposed to renting a property, helps you to feel more a part of the community and you will finally feel as if you have settled down and planted roots!
