Updated: Nov 9
Are you a young family, working couple, and good-paying jobs? What do you want to do with your savings? Buying a luxury car, travel the world over, and shop fashion clothes might be so tempting but they have little to do with your future lives. While busy at work and advancing your careers, buying a house would help you build a secure future. Here are some top 8 advantages young couples can get from buying their own home.
1. Build equity with their savings
Once they buy a house at given down payment, their equity increases as they keep on paying their mortgage consistently. Building equity gives young families a sense of security and motivation to do more.
2. Prompts them to save more with little left to waste
Buying your house would make savings inaccessible and helps cut unnecessary expenses. Monthly mortgage payments would also cause financial strains on the young family, and they become more conscious when they spend money.
3. A stable place to live, customized to their taste
As a tenant, you do not have control over what the landlord may decide at the end of the tenancy agreement. Moving from a house to house causes financial burden and time constraints. Owning a home would give young families a stable place to live, and they can plan where to work and how to commute to work. They can modify and decorate the house to satisfaction, which would otherwise be restricted if they were tenants.
4. Sense of community life
Owning a house creates community ties as you spend more years in one area. Young couples get the opportunity to contribute to the community where their children will grow. They can also influence policy changes that benefit the community in which they live.
5. Could be cheaper than paying rent
As cities grow, locations closer to the city center get more and more saturated, and rentals get more and more expensive. After a few years of owning a house, they might come to the point that rent is much higher than their fixed mortgage payment.
6. Fixed monthly housing expenses
Rentals can be unpredictable as they are so dependent on the market situation. Young couples may face difficulty fixing budgets for rentals from year to year. Mortgage payments are fixed amounts for two or three decades. Young families need not bother about market fluctuations that affect rentals.
7. Collateral for bank loans
Is it time to start your own business? Owning a house gives young families reliable collateral for bank loans. Investing savings on housing now is good leverage for a future start-up business.
8. Value appreciation and retirement package
Properties appreciate significantly after twenty or thirty years. By investing in their own home, young families have an added advantage of preparing their retirement package years ahead.