A lot more people are paying rent in today’s economy, and many discussions are ongoing as to the viability and business sense in buying your own home. This article will show that owning your home is still one of the best investments that you can make.
Makes more than the stock exchange over the long term
Living in your own home and paying off the bond or mortgage is a proven winner among any other financial investment options. As soon as you have paid off the interest and pay the capital of your home value, you are earning equity. We all need to have a place to live, and if you own yours, then any improvements and appreciation in value are for your own benefit. If you buy in the right area and the home has good structure, then your property is likely to appreciate over the long term. Location is key in terms of how much the property will increase in value over time, but it is a given.
Can be used for business collateral
As long as it is kept in good condition, financing through hard money loans will be a terrific way to access immediate finance. You can also use your home to access more traditional in bank forms of finance. For many in the real estate game, their first home has been the foundation for all further investment in property. It provides immediate surety and shows the lender both stability and the ability to make repayments. Using your home as the first step on the property ladder is a fantastic way to invest, fix and move upwards, or as they say in the business, buy, fix and flip. Keep in mind that it requires moving out and some disturbance as you fix, so ensure that your family is on board.
You can create your perfect bespoke family space
Having your own home allows you the freedom to make structural and design changes that a landlord may not be comfortable with. You may not be able to make the changes you need to in a rental property, and this may adversely affect your overall quality of life in your living space. Owning your home provides a sense of ease and comfort in the knowledge that you can make changes to improve your lifestyle, or simply change the interior colors whenever you want to without having to gain permission first.
The reasons to buy are numerous, and the argument is clear. To make it happen, you need to save, plan and then save some more. Many self-made millionaires have credited their wealth to owning their first home and for many, it wasn’t necessarily a real estate investment to begin with, but because we all need a place to live. Owning this home is still one of the best ways to make real wealth a reality as you are then able to leverage or access finance to move on to bigger and better things.