Buying a new home grows your wealth faster than renting – There can be many downsides to both renting and buying. Depending on what side of the coin you are on…if you’re leaning towards purchasing a home the purchase can have added benefits for your bank account that renting does not. Renting can certainly alleviate many of the costs that go along with property ownership. However, purchasing a home can have positive monetary affects in the long run.
The Good Impacts of Inflation
While inflation is often seen as a dirty word a real estate purchase can provide the positive side of inflation with how your home purchase investment will grow over the years. Putting money into rent will mean that money is gone and out the window once you’ve paid for the month. Investing into a property will come back to you in future gains as home equity in the real estate market. While buying a home will be more expensive in the short term, it can also provide you with greater financial flexibility and equity in the future.
Renovations Will Increase Home Value
While freshening up the bathroom or painting your apartment isn’t going to add any extra value to your wallet when you move out. However, making upgrades to a home that you own will have the very opposite effect! Renovations can certainly be unpopular while they’re taking place. No matter how small or large, they can mean an easier sale and a higher profit when the home finally goes on the market.
The Opportunity For Rental Property
An apartment you rent won’t offer an opportunity for investment. A home you own may serve as an ideal investment property at some point in the future. With the success of Airbnb and unique modern housing needs that may only require a home rental for a short period of time, being able to use your house as a rental property can be a significant boon for earning money you would have otherwise been without.
Buying a home can require a lot of number crunching in the beginning that rent does not. It can also provide significant financial benefits down the road that might not exist without such a purchase.
If you’re considering purchasing a home in the near future give us a call at 301-483-8073 to discuss your buying power. Visit our website: www.ahawkesraltors.com to contact us – your local real estate professional for more information.