Here are some things to consider when you start wondering whether you should stop paying down the landlord's mortgage and take out one of your own instead. What possibilities do you open up for yourself by opting for home ownership? Here are just a few:
• If you're 35 now and just buying your first home, you'll be mortgage free by the time you're 60 and sitting comfortably on a considerable asset. It could mean financial independence as a senior and the opportunity to enjoy your golden years.
• It's highly likely that your investment will appreciate considerably in 25 years. Don't buy now with the intention of making a quick profit. Think of home ownership as a sound, long-term investment.
• Buying a home is a very effective way of saving regularly for 25 years. Even if you never buy into another retirement savings or investment plan, you're effectively putting money away for the future.
• Owning a home of your own means you can set down roots, get to know your community and involve yourself in it. Kids can make friends in the neighbourhood, many of whom will probably go to the same school and be involved in similar recreational groups.
• Mortgage life insurance that pays off the balance of the principal when a homeowner dies means your family will be left with a home and without debt… not high and dry!
• When you buy a home, you will first need money for a down payment. The amount of the down payment can vary, but generally you should make a down payment that equals at least 20% percent of the purchase price. First-time homebuyers may go as low as 5%. You should also consider starting off small making sure you do not over-extend your payments.