Choosing Wisely: Top Reasons to Buy Rather Than Rent

Making the decision to purchase a home can be complicated, stressful, and time-consuming. However, there are many good reasons owning your home can be a wise choice. For many homeowners, the initial emotional investment in the process pays dividends in numerous ways. If you are trying to decide whether to continue renting or jump in with the purchase of a home in southwestern Ontario, read on for our top four reasons to buy rather than rent!

1. Be the king or queen of your own castle
Most of us have lived under our parents’ roof or rented at some point in our lives. Anyone who has done so has dreamed of being free from the constraints of that arrangement. Owning your own home provides the freedom you seek. It is a place where you are in control. You can take pride in it. You have an emotional attachment to it. Unlike a rental home or apartment, you are invested in making it the best it can be by maintaining it, upgrading it, and customizing it for yourself. And in many cases, that care, attention, and investment will pay off in more ways than one!

2. Build your personal wealth
Real estate has traditionally been one of the safest assets to invest in. While there may be housing price dips and corrections, over the life of a standard mortgage (25-30 years) housing prices have consistently risen. The rate of increase of residential housing prices is frequently greater than the rate of return on savings accounts, bonds, or other low-return savings vehicles and can be a good hedge against inflation as well. This makes owning a home an excellent way to build wealth, both in the increase in the value of the property, as well as the ability to use the home as collateral.

3. Provide yourself with long-term financial stability
One of the benefits of having a mortgage is that you pay it down over time and eventually reduce your amount owing to $0.00, unlike the never-ending way there is always another rent payment on the horizon. Once you pay down your mortgage balance, your monthly financial burden for providing shelter will be significantly reduced. This can make retirement significantly more feasible at a younger age. Just imagine for a moment the quality of life you could provide for yourself with whatever amount you currently pay towards rent or a mortgage instead being devoted to personal enrichment, travel, or anything else you desire!

4. Unlock opportunities for passive income
There are a variety of ways home ownership can be used to earn passive income. You may choose to buy a multi-unit home and rent out one or more of the units to earn rental income. Or you may purchase a home that you initially use as your residence, but eventually rent out when you move to your next home. Or, you may buy a dwelling solely as an income property. Whatever the strategy, owning a home can be leveraged to put your money to work for you and build a steady incoming stream of wealth. You do, of course, need to be willing to accept the costs and potential risks of being a landlord.

If you are looking for a place of your own around London, Ontario don’t hesitate to reach out to Daniel Kiekens at dan@dkre.ca. As a licensed real estate professional, Daniel can help you find your perfect home, whether it is strictly for yourself or as an income property!