There has been a large debate recently, as interest rates have risen, that home ownership may not be as desired as in the past.
However, when faced with the equally rising costs of rent, it can be a real battle to figure out what is best for you. While the cost of living has dramatically increased, we are also seeing personal debt levels rising.
Part of that rising debt level is our pursuit to maintain an image that we believe reflects a successful life, including travel, and ‘living in the moment’. What this does is erode our ability to save.
So, if you live in debt to maintain a lifestyle, how does that affect your ability to enter into home ownership? And is renting the future? The answer is that home ownership is still better.
“Home ownership safeguards against our modern-day consumerism that promotes lifestyle over Financial Freedom,” says online real estate guru Jared James.
What home ownership does is force you to make your mortgage payments. This ultimately contributes to your overall financial security as, one day, you will be able to sell your home that will have equity in it, thereby providing you with what was always a form of a savings plan.
If you are making mortgage payments, you may be forced to let go of some of the luxuries that we get caught purchasing in the constant consumerism push we are bombarded with on a daily basis. Staying in a rental does not pay yourself either. While we need landlords, renters are building their landlords’ financial future, not their own.
So, to renters, make the choice between those consumer luxuries, maybe skip some vacations, and save for a down payment. Your future self will thank you when you are a homeowner with equity that allows you to have some financial security. For homeowners, keep doing what you are doing as it is the right thing. life
Crystal Adamo is a realtor with RE/MAX Rocky View Real Estate.
