Sure, just the idea of buying property gives you panic sweats, I know, me too. However, over history there have been so many arguments that proof that this is one of the best investments you can make in your lifetime. Here are a few pointers to help you at least think about it.
It may not look this way when you look at the whole figure all at once, but think about it. You already pay rent every month. There’s a portion of your salary that goes to that category regardless. When you buy a house and make the monthly mortgage payments, you are putting that money into something that is going to be yours permanently. Besides, on average, your property will be 5% more valuable on a yearly basis (depending on the neighborhood, area and what you put into it as far as improvements go).
You may think that you can make that kind of profit if you put money on the bank. However, taking into account that you only placed one down payment of a small percentage of the actual property price, maybe 20%, and the yearly increase will be measured against the total value, the result will be that with less money you made a bigger profit faster.
Perpetual rent control
Most people don’t have the benefit of rent control, so the amount that you pay for your apartment or home keeps increasing every year and maybe your paycheck does not. Think of this investment as having rent control but with the plus that at some point you will stop the payments and it won’t be wasted. You were putting all your efforts into owning your house.
Even if the interest rates in your mortgage are programmed to scale, they won’t be nearly as high as rent increases. Think of it thirty years from now, although you won[t be able to guarantee that you can stay in the same place for that long into the future, the owner might want to sell or even use the place for himself.
The government will actually help pay for your house! All of the taxes that you payon your new property will be deducted from your gross income when the tax man pays his yearly visit.
This goes here and this goes there, because I said so!
Ever wanted to make changes in your house but couldn’t because your landlord wouldn’t allow them, but he wouldn’t do anything to improve your home either? Well, that is something that you can actually do in your home. And the best part is that whatever increased value because of the improvement will only help you and not your landlord!
Get new furniture, look at all that space!
Chances are that the place you’re buying will be bigger than the one you are leaving, and you might even get an outdoor space. You’ll be so excited not to have to figure out where to put that yoga mat and the dog food with all of that new space. Though let’s face it, getting creative with space was fun!