Advantages of owning a home
For many being able to buy a home for quite a while appears not to be feasible. But paying rent on a monthly basis, you end up adding to another individual's pocket of wealth and reduce what you have in yours. Therefore, should the opportunity arise to buy a property that you could turn into your potential home, it is highly recommended that you do so.
Not yet convinced that owning a home is highly beneficial in more than one way, please feel free to read the advantages below.
1. Investment
The biggest advantage of buying a home is the major investment that it poses for individuals. When purchasing a home, every monthly payment serves as an investment in an asset that increases over time. Oppositely, paying rent is simply a recurring expense without the potential to build toward future wealth.
Investing in the property market is viewed as a good option. If you have purchased a property at a competitive price and it is ideally located in an established area near any major routes and amenities, your investment is highly likely to increase. It is however very important to keep up with home improvements and maintenance, which assist in the growing value of your property.
Unlike investing in stocks, investing in property provides one with some form of stability due to the fact that it is a physical asset in nature. Luckily in South Africa, our property market is viewed as one of the most stable on the continent. Because of this, property offers a safer avenue for investing and therefore also reduces concerns about a sudden depreciation in value.
2. Freedom
Buying a home, grants you freedom of choice. Choice with regards to renovating and upgrades that add to the value of your home. If you would like to paint your home or are thinking of adding solar panels, it is your choice and you will not need to consult a landlord. For those staying in complexes or estates that have Home Owners Associations, you will be able to request permission for certain changes, such as painting your home on the outside.
3. Home Equity
Equity is the difference between what the market value of your property is and the amount that you still owe on your home loan. You are allowed to request additional loans and possibly pay off other large expenses that you might have.
4. Peace of Mind
While renting a space, there may be circumstances that will require you to vacate your property on short notice. Such as your landlord wanting to sell or possibly even occupy the space themselves. The chances of you being forced to move out of a home you own are few and far between.
5. Rental Opportunity
Cape Town has been voted as one of the world's most sought-after holiday destinations. This presents home owners with such an array of opportunities to have their homes rented for a short term during a holiday season should they want. While you are away on holiday, you could have your home rented out to holiday makers.
Your home could also offer long term rental opportunities if it consists of a flatlet. This could easily be rented out to individuals searching for a quieter, more suburban lifestyle or environment.
As one can see owning your own home provides an array of advantages and plenty of ways to increase your investment worth. It is however also important to remember that owning a home, costs one not just time but also money. It is therefore important to ensure that one is ready and willing to take on the commitment. If you are committed, your property will in time work for you.
