At Altius Mortgage and our partners at Mortgage Ogden, we know the jump to homeownership for those who have previously rented for their living situation can be a big one. This is true in several areas, from the financial commitment you’re making to the responsibilities you’re taking on by owning your own home.
For first-time buyers considering this leap, however, it’s important to take stock of the numerous benefits potentially associated with homeownership – a few of which are greater than you might have thought. Let’s look at several factors, both financial and otherwise, that make owning a home an attractive option compared to continuing to rent.
For starters, those looking to begin investing in their future have few options better than owning a home. Real estate is considered one of the single safest investments out there – home values virtually always go up over a period of years into the future.
If you’ve been renting in the same area for several years, one you know you’re comfortable in, it pays to investigate purchasing a home in this area instead. Rather than paying into someone else’s mortgage and building their investment, you can get started on your own and begin benefitting yourself in the long-term.
Provided you take on the right mortgage, one you can pay back properly and within the required timelines, owning a home also serves as a great way to build your credit. Every time you make successful mortgage payments, it reflects that much more positively on your overall credit profile.
After enough time, your mortgage will provide a big boost in an area known as length of credit history, which is a huge factor in calculating credit score. These years of successful payments will provide proof to future lenders that you’re trustworthy.
Owning a home isn’t just beneficial for financial reasons – it’s also a big positive for many personal areas as well, namely making the space and property your own. When renting, there are several limitations on your ability to design and improve as you see fit; you generally can’t make major structural changes or even change paint and color schemes.
When you own a home, however, these kinds of areas are fully up to you. You can prioritize the elements of your lifestyle you care most about while keeping yourself and your family happy.
Finally, renters tend to have a more difficult time establishing a community and long-term relationships with their neighbors. Many rental homes are near other such homes, meaning residents in this area will commonly come and go, often not staying longer than a year or two. When you own a home, however, you can begin to form lasting connections with other homeowners in your area, connections that often end up valuable in the long run.
For more on why owning a home holds several distinct benefits over renting, or to learn about any of our home loan services, speak to the staff at Altius Mortgage today.