Today, in many cities, buying a property can seem unachievable to many prospective homeowners. You might be wondering why you should buy when you can rent. True, there are many positives to renting: you don’t have to be locked into investment property finance, you don’t have to cover property repairs, and you don’t have to worry about the life of your investment. However, you are paying week after week for a piece of earth that you don’t own.
While it can be a daunting prospect, here are the top three reasons that you should buy rather than rent in the current real estate market:
There is nothing like the freedom that comes from owning your own home. You can paint the walls whatever colour you want, conduct renovations and repurpose the backyard without having to ask for permission from the landlord. What’s more, you can live in the home if you want, or you can be the landlord yourself and rent out your property.
2. An investment in the future
Rental properties are a great way to diversify your investment portfolio. Investment property owners have the luxury of knowing that their home will appreciate in value faster than other investments, such as stocks. Once your property is negatively geared, you can reap the benefits of rental income.
3. Tax benefits
There are many tax benefits that apply solely to property owners. You can claim things such as depreciation, advertising costs, cleaning costs, repairs and maintenance, pest control costs, building costs and much more. You will need to talk to your tax agent to find out what benefits apply directly to you, but if you are thinking of becoming a homeowner you might be pleasantly surprised next year when tax time comes around.
As you can see, despite the initial outlay to purchase your home, the follow-on benefits are immense. These are just a few examples. One day, you will no longer have mortgage payments, and you will have a sizeable investment that you can pass on to generations to come, or can sell to enjoy your retirement. Payoffs like that don’t come from renting.