What happens if you never buy a House?
Most people who openly declare that they are not interested in ever owning a home are often met with disbelief as home ownership is the ultimate American dream. Most people who do not want to own homes are viewed as financially irresponsible for ignoring the investment opportunity. If you are in this category, here is what happens when you never buy a house.
Rent is Cheaper
Most homeowners and sellers are all about the savings that come with it. In most situations mortgage is cheaper than house rent. However, what most homeowners rarely mention is the property taxes, increased utility expenses, maintenance costs and homeowners insurance. A fully functional home is not a one-time investment, and you will require more than once a month repayment in the form of mortgage. Some homeowners do not pay attention to the exact amount spent since some expenses come as emergencies.
Renting promotes Simplicity
The freedom and limitless options of owning comes with its share of lifestyle creeps such as luxury furniture expenditure, renovations, bigger cars and a more lavish lifestyle. While renting does not mean that you cannot decorate your home, you will dealing with a smaller and more defined area. Additionally, knowing that you do not own the space goes a long way in ensuring that you do not over-purchase items you do not need.
Loss on other investment opportunities
Buying a home is not a cheap investment and might take you years to complete mortgage repayments. By sinking all your income and savings into home ownership, you lose other investment opportunities. Instead, put the money in bonds, stocks, and earn a passive income without putting in too much work. This will shield you in case of a dropping market value of a property.
While all the above points are relevant on why you should never buy a house, it is not a conclusion. Consult with investment and lifestyle experts and choose your path. For Real Estate Agent Markham, you can contact Yourmarkhamrealestate.