There are times when it is better for a person to rent, but most often home ownership has many more benefits and advantages.
About 10 years ago I had a retired aunt and uncle who rented an apartment in Victoria Island. Uncle Paul (not his real name) was a retired gospel minister. Throughout his career he and his wife lived in a church house, furnished by the congregation while they ministered there.
He and his wife told me that the biggest mistake they ever made was not to invest in buying a home. In their retirement years, when their other retired friends were living in homes that were almost paid off and had appreciated greatly, Uncle Paul and his wife were using a huge portion of their limited retirement money to make expensive apartment rent payments. They strongly cautioned me not to make the same mistake they had.
Recent studies are showing that there are many benefits for both the owners and the community for owning your own home, including increased education for children, lower teen-age pregnancy rate and a higher lifetime annual income for children. Besides these, listed below are some of the primary advantages for owning your own house.
1) More Stable Housing Costs
Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period. If the taxes go up, the increase is usually gradual. This stable housing cost is especially important in times of inflation, when renters lose money and owners make money.
2) Debt Consolidation
If you need to, you can refinance a mortgage loan to consolidate other debts (an opportunity you don’t have if you are renting.) And the interest on this is also tax deductable.
Instead of payments disappearing into someone else’s pocket, home owners are building equity in their own home. This is often one of a person’s biggest investment assets. Each year that you own the home you pay more toward the principal, which is money you will get back if you decide to sell the home. It is like having a scheduled savings account that grows faster the longer you have it. If the property appreciates, and generally it does, it is like money in your pocket. And you are the one who gets to take advantage of that, not the landlord. You can then use this equity to plan for future goals like your child’s education or your retirement.
4) It is Yours!
When you own a home you are in control. You have the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and threaten to evict you.
Owning a house is not only for the rich as one of our partners, Lily Homes Limited, has come up with a wonderful house ownership offer called “Rent To Own“. It’s an opportunity of a lifetime where you can own your own home with a minimum of N70,000 only. With this opportunity, you finally can stop wasting money on rent and instead, start investing for the future.
Buying a home is an important decision. It is often the largest purchase a person makes in his or her life.