Although we all require a “so-called” place to “hang our hats” and refer to as “home,” one has a number of choices and alternatives to consider when deciding whether or not he should continue renting or buy and own a house of his own. One of these choices is whether or not to buy a property outright.
This article will highlight five other important aspects that are connected and related to why many people choose to buy rather than rent, despite the fact that financial concerns and other factors like these are obvious factors. Keep in mind, however, that we all have specific particular priorities and a comfort zone, which can either be real or not, of service or work against our interests, and so on and so forth!
Keeping this in mind, the purpose of this essay is to make an attempt to quickly explore, examine, review, and debate these five considerations, as well as the reasons why they frequently make such a significant difference in one’s approach and actions linked to this topic.
- The American Dream: Many people feel and believe that having one’s own house is an essential part of the so-called “American Dream,” and they want to make sure that they get their fair share of whatever deal is being offered! When we own a home, our monthly payments and costs, although typically more than when we rent, instead of going to a landlord, etc., develop some financial equity. Additionally, the value of one’s property is, for the vast majority of people, their single-biggest, financial asset!
- Take care not to let your pride in your home lead you astray by putting too much emphasis on trying to keep up with the Joneses. It would appear that many people desire what is frequently referred to as bragging rights and having a property to show off, even if this may mean more stress and less than the highest degree of enjoyment and contentment with the purchase in the longer run! Nevertheless, this sense of pride in one’s home is frequently a huge and crucial aspect!
- Equity, as opposed to ordinary expenses: When we rent, we do not accrue any financial benefit from the years spent paying rent and being a tenant. This is not the case when we own our own home. Even while some first-time purchasers might not be ready for the obligations, etc., that come with home ownership, many of them are more interested in the potential equity gains that can be made in their primary asset. On the other hand, it is essential to take into account the risks involved in endeavours such as marketing time or trying to flip houses, etc.
- Benefits to one’s tax situation: Being a homeowner has a number of positive effects on one’s tax situation. These include subtracting from one’s gross income the amount of interest paid on a mortgage, as well as the amount of taxes paid on real estate, in order to arrive at one’s net income for purposes such as filing taxes, etc.
- Customizable: When you rent, you live in a place that is owned by someone else, and no matter how much you try to make it your own, you won’t be able to. Only when you own your own home is it possible to customise your living conditions and quarters to meet your individual requirements, priorities, perceptions, and/or life changes.
Over the course of my more than 15 years working as a real estate licenced salesperson in the state of New York, I have witnessed firsthand those who purchased a property for significant reasons as well as those who did so for reasons that were mostly motivated by their feelings. Be prepared, and move forward in a prudent manner!
For the past four decades, Richard has owned businesses, served as a COO, CEO, Director of Development, consultant, professionally ran events, consulted to thousands of people, and led personal development seminars. In addition, he has been a licenced real estate salesperson for more than 15 years. Rich is the author of three books in addition to thousands of articles.