The Benefits of Buying a House
First-Time Buyers' - Capital Growth, Home Equity & Home Improvements
Feb 11, 2009
Buying a house is a dream for many first-time buyers. Those first-time buyers that do manage to save a sufficient house deposit will benefit from considerable home equity and long term capital growth. Those buying a house will also have freedoms that weren't available when they were renting, including being able to perform home improvements or keep family pets.
Capital Growth and Home Equity for First-Time Buyers
Renting a house is seen as dead money by many first-time buyers. The only people benefiting from home equity and capital growth are landlords. First-time buyers that are prepared to take a long term view will benefit from considerable home equity. According to online financial publication, the Motley Fool, first-time buyers can, on average, benefit from property doubling in value every 9 years.
First-Time Buyers and Home Improvements
Buying a house provides first-time buyers with an opportunity to perform home improvements. There is no point in performing home improvements when renting as any capital growth and home equity will belong to the landlord. Buying a house gives first time buyers more freedom.
First-Time Buyers Benefit from Lower Mortgage Repayments when Buying a House
In the current low interest climate, buying a house allows first-time buyers to benefit from lower mortgage repayments. It's currently cheaper to buy a house than rent one. Those with a bad credit rating may have to pay higher mortgage repayments and will require a higher house deposit.
Buying a House Allows First-Time Buyers to Keep Family Pets
Many landlords don't allow tenants to keep family pets. Buying a house changes that as there are no restrictions placed on the keeping of family pets. This means that a first-time buyer can simply apply common sense regarding whether keeping one is sensible.
Using Home Equity to Secure a Homeowner Loan
Once sufficient capital growth has taken place, it is possible to use any home equity to get a homeowner loan. Homeowner loans can be used for debt consolidation, foreign holidays or even further home improvements. Failing to keep up with monthly repayments on a homeowner loan can lead to creditor harassment or even house repossession.
First-time buyers that have a decent income, steady job and sufficient house deposit stand to benefit greatly from buying a house. Buying a house doesn't simply mean that a person has somewhere to live, it means that a first-time buyer benefits from capital growth, home equity and personal freedom.
Those that found this article useful may also wish to read about Fixed Rate Mortgages - Pros and Cons and Standard Variable Rate Mortgages - Pros and Cons. First-time buyers' should also consider utilising the services of a mortgage broker to help reduce mortgage repayments.
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