Is it ultimately better to rent or own a home? This question riddles most adults at least once in their life. It is a big decision and can affect your future assets and expenses, such as, retirement, savings, or unforeseen events. In short, owning is better than renting. To start with the most obvious of reasons, lets talk about equity. Homeowners build equity on their property each year as the value of the property increases. This equity can become a savings as you decide to downsize your home and head into retirement. Or, it can be borrowed against in the case of an unforeseen expense. Equity can also help you upgrade throughout the years to a bigger and better home as you roll your equity into a new mortgage, helping you to continually upgrade, but never pay the price. On the other hand, when you rent, your landlord builds his own equity off your rental. As you pay his mortgage, he is earning money off the property.
Overall, owning is the better option. So, why doesn’t everyone own? Because renting feels a lot less overwhelming than buying. First time home buyers get scared away by the amount of money they have to borrow from a financial institution. Don’t let a mortgage stop you from investing in your future. Getting into your first home isn’t as difficult as it may seem. There are many ways to obtain a home loan and a lot of programs to help first time homebuyers. Once you make the decision to own then you can start investing in your future.