Owning a home is a dream for most people but for others, it is nothing but a wearisome burden. Buying a home is an important financial decision that needs careful consideration on the benefits and drawbacks of owning a home. Before buying a home you need to deliberate whether homeownership is for you and also if you have enough money saved for making this investment. Your decision to rent or buy a home will depend upon your future plans, personal desires as well as financial stability.

Benefits of owning a home vs renting

Homeownership comes with a lot of rewards as well as responsibilities. Many people get torn in between deciding whether to rent or to buy a home. Following are some reasons why people choose to either rent or buy a home.

1. Worthy investment

Every year the prices of home appreciate. This simply means that if you maintain the ownership of your home for a period of time, it is most likely to increase in value and this will give you a worthy return on your investment. Moreover, there is no better way of saving like paying your mortgage. This is because it increases your home equity which can be of great help in the future when you are in need of money. Renting a home although it is cheap it does not offer you any financial line of credit.

2. Powerful credit history

Choosing to buy a home and regularly making timely monthly loan payments proofs to other lenders your credibility. This will be on your advantage in the future when you may be in need of getting another loan to purchase a car, remodel your home or even pay other weighty expenses. If you’re from Ontario, It is easier to get a second mortgage in Hamilton or a second mortgage in Toronto with a good credibility score. Strong credibility is a guarantee that you are a trustworthy borrower and the possibility of you failing to honor to pay your loan is low. Renting comes with no credibility thus you cannot enjoy the privilege of getting loans to pay for unexpected expenses.

3. Ability to create the home of your dreams

Buying your own home comes with the flexibility of creating the residence you have always dreamt of. From size, to design you are able to do whatever you desire to make the place a haven without the need of acquiring approval from a landlord. For renting, you only get what you pay for and you cannot modify the rooms without permit the landlord.

Drawbacks of buying a home vs renting

Buying a home needs a growing income while renting comes with flexibility. Owning a home is a long term goal that requires a stable savings plan. Renting can suit your financial budget and is cheaper compared to buying a home. Your rental fee most of the time covers utility bills whereas buying a house comes with wearisome responsibilities such as roof maintenance.

In addition, unlike homeownership, renting a home comes with no ties. If you own a home and want to leave, you have to go through the hassles of finding a buyer to sell your house to. So if your lifestyle requires frequent relocating, renting can be a better option for you.