Many young people experience uncertainty when it comes to buying their own home.
Not only is it a huge commitment, but with the South African economy being unstable, many people wonder whether it would be a good move to buy their own home or if they should postpone their plans indefinitely.
Young people should definitely not be doubting this choice: owning a home is preferable to renting 99% of the time. If you are going to buy, it is better to do it sooner rather than later.
Here are some reasons why people are embracing homeownership:
(1) Having your bond paid off?
Your home loan will be paid off by the time you are old, which means that you can retire with peace of mind.
It gives you a type of economic security and freedom that you would never have had otherwise.
You won’t have to worry about things like an increase in rent when you will be living on a fixed income. Even though this might be somewhat of a morbid thought, but you can add the house into your will as an asset so that your children are well taken care of when you are no longer around.
(2) Able to finance your home more easily?
Interest rates might not be at their historical lows anymore, it still benefits you to start paying off your home loan as soon as possible.
Every extra bit you’re able to put into that bond, it will shorten the time it will take you to pay off your loan which means you can own your home a lot faster.
(3) Customize your home the way you want to?
When renting, you aren’t always able to decorate, paint or remodel the home to suit your needs.
When you own a house, you are free to do just that and renovate, remodel, and improve as you please.
You can choose to install insulation, solar panels, and a heat pump to make your home energy efficient and minimize your electrical bills.
And you can do all of this without asking anyone for permission! It sounds very adulty, right?
(4) Use your home to earn extra money?
If you are able to, try and find a house with additional rooms or a cottage on the property.
You can get tenants to live in the house with you, if you are up for it, or you can rent out the cottage. Some homeowners even rent out their garages if they don’t use it.
If you are not keen on having tenants on your property or inside your house, you can consider renting the space out to businesses that need offices. This will bring an extra income over weekdays and they will be out of your way by the time you get home from work too!
(5) Can your home help you financially?
The value of your property will keep on growing as the amount that you owe decreases. After a few years, you will be able to take out some of this equity to send your children to university.
You may also decide to sell and use the profit to buy a new home. When you are ready to retire, you might use this amount to buy a smaller property and keep your retirement fund intact.
Homeownership is never a bad idea, but it is a bad idea to leave it for too long.