Long term value
Mortgage repayments are sometimes larger than rental payments, sometimes not. But either way, this doesn’t mean that buying a house is a losing proposition since the total value of your property will eventually grow to cover any rates, fees and taxes you have to pay for owning the property. Generally, the growth in value of residential property is often around nine per cent, which is a far higher return than term deposit interest rates or most other investment strategies. Purchasing a home is a steady long term investment pursuit.
When owning a home, you will accrue equity, which is the prospect you have to purchase more real estate or expand on your current property. Equity is a significant benefit of a mortgaged property.
As you pay off your mortgage, the principal amount that you owe (which is the total amount you owe minus the interest) is reduced meaning you actually own more of your house. That equity gives you the advantage of redrawing or refinancing on that loan to invest in your house or buy a second or more valuable property; further enhancing your investment.
Buying a home is a great asset that comes with a lot of social and financial benefits and can be the perfect living and investment choice for a lot of people.