Home “ownership” has a nice ring to it when you say it, you can stand tall and proud when you point to your own property and say, “I own that house.”
For most people owning their own property is the main goal of life, but there are still a significant number of people who prefer renting rather than owning their own properties.
There are many choices that we all have to make in life – where to work, who to marry, which car to purchase and deciding to buy a property is one of the best decisions that we can make in our lives, with the most obvious advantage being the protection and stability that home ownership provides.
Property experts have concluded that although it might appear that renting has more short-term benefits than owning a property, home ownership has more advantages over renting in the long run.
Although home ownership is not for all, the benefit that homeowners have over renters is that they do not have is that they can give their families a much better and more comfortable life although renting does not provide such guarantees.
Benefits of buying a Property
You are in control…
When you purchase your own home, you have the peace of mind to realize that you can live there forever for as long as you want, unless you find any unforeseen circumstances that will cause you to sell your house.
Unlike the tenants, your stay at the property is subject to a lease arrangement between you and your landlord, and there is no absolute assurance that it will be extended.
If you have a bathroom or kitchen that you don’t like, you want to change the color of the wall paint, add some interior and exterior décor, or even make some upgrades, you have the ability to fully reshape it into a space that suits what you want.
You win in the long run…
What is the difference between a tenant and someone paying a bond of R10 000 for example after 15 years?
They both pay the very same price, but one of them ultimately profits at the end of the day, and that’s the one who buys the house.
If your property is in a well-located area that is close to important services such as schools, malls it can gain value over time, resulting in a rise in your own personal wealth.
You can rent it out and get passive income…
One of the things you can take advantage of when you own your property is renting it out and having passive income from it. The money you get every month can be returned to the property itself through renovations or by mortgage payments.
By means of online platforms such as AirBnB, most homeowners have made huge profits by renting out their spaces, which would not be permitted for tenants in their lease contracts.
On the other side of the coin…
When you rent, you simply pay for someone else’s mortgage, and even though you pay your rent on time, there is no guarantee that your lease will be extended when it expires. If the home owner decides to sell the property there is absolutely nothing you can do to continue staying there.
Benefits of Renting
More Flexibility to where you can live
One of the most significant advantages of renting over home ownership is that you have the freedom to live practically anywhere you want, and when you don’t like it, you can move to another place that has what you’re looking for.
With home ownership, you are more constrained to where you can live through your affordability, mortgage, insurance, property taxes, and so on.
Also, when the economic downturn strikes, as a tenant you have a chance to downgrade to more affordable places, and this is much more difficult for homeowners to buy or sell property to downgrade because of the different fees involved in buying or selling property.
Fixed Monthly Rent
For renters, they have fixed monthly rents for the length of the lease agreement, which ensures that they can budget and invest much more easily than homeowners who have to deal with fluctuating property prices.
No Down Payments
Tenants have one advantage on homeowners when it comes to the operating expenses associated with home ownership. While a homeowner will be needed to provide protection before moving in, it is considerably lower than the down payments necessary to get a mortgage on your house.