Should You Pay Your Landlord Or Your Lender?

Posted on: 18 June 2018

Rents have risen across the land and certainly show no signs of stopping anytime soon. If you rent or are looking for a place to rent, you might be scratching your head and wondering what is going on. To make matters worse, you may be hearing from friends with fresh mortgages in hand that their monthly payment is less than what you are paying for a place that you cannot even re-paint. If you are trying to decide whether or not it might be better to pay a lender rather than a landlord, read on.

You'll feel like more than just a temporary resident

One of the first things that surprise most first-time homeowners is the way they now are more eager to take ownership of their community. You might find yourself suddenly a lot more interested in what is going on down at city hall when you are an owner, and issues like local crime, politics, and social woes get your attention along with those welcome feelings of pride and belonging.

Your home is now really your home

Let's face it; it's difficult to really put down roots when you are in a rental. Once you pick up that key at the closing, however, it's game on. Give yourself the go-ahead to paint, plant, tear down, hang, and just about anything else you put your mind to when it comes to making your home truly your own. Among other things, consider a trip to the local animal shelter because now no one can tell you not to.

Tell the taxman to come back later

Being a homeowner gets you tax advantages not available to renters so that tax time might come as a pleasant surprise for the first time ever.

Plan ahead and budget confidently

Whether your rental situation is month-to-month or you are on a year-long lease, you could face an increase at almost any time. When your landlord decides that they can ask for more for rent you are at their mercy, however, unless you have an adjustable rate mortgage you can count on your monthly payment remaining the same for years to come.

Your numbers look a lot better

Your credit score is a revealing snapshot of your finances, and every month you pay your mortgage on time is a boost in your credit picture. Rent payments, unfortunately, count for less than nothing when it comes to your credit score.

Effortless savings

Your home is more than just a place to hang your hat; it's an investment. All you have to do is pay your mortgage payment each month, and your home will very likely grow in value over time. Having a home that climbs in value is like putting money in the bank.

Ready to look at homes for sale near you? Speak to a real estate agent as soon as possible.