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| Three cases where tenants lose money |
Are you still renting a house or apartment for yourself or your family? If so, then you are losing money. Besides the loss of money from real estate, tenants do not get to enjoy the home that benefits homebuyers. If you are a tenant, learn how to buy a home.
Try if you can not lose money. Think about these three situations in which you lose money by renting:
1- You pay the price of paying the mortgage to another person
You are among the losers on the “estimate” that gives the property to the owner and “appreciation” is a term used in accounting related to increasing the value of the asset, which means in real estate terms, the added value of the property. Over the past years, the value of homes has increased in most countries of the world, making many real estate investors rich.
2- Tenants, like buyers, do not have a freeze on their monthly housing expenses
Of course, many home buyers get mortgage payments with adjustable interest rates and their payments go up over time. However, these payments will not rise in the long run as rent increases. Just think about the cost of the apartment today compared to ten years ago homebuyers who received low monthly payments 10 years ago and who did not refinance mortgage payments, have low payments and do not have to worry about rising rents.
3- Tenants do not benefit from tax benefits
Homeowners get discounts on income tax. Here there is a big difference between being a landlord or a tenant so do everything you can and search for appropriate ways to be a homeowner, so you benefit a lot.
Psychological satisfaction with home ownership
Besides the loss of money with real estate, tenants do not get the same comfort as enjoying a home that benefits homebuyers. Many owners will not allow you to paint your walls with the colors you want. Also, you will not feel that you want to repair the property with custom window covers and you will not have a major role in the flooring materials. Since you cannot make your personal opinion, you will not feel at home just as you do for homeowners who feel emotionally attached to their property.
How to buy your first house
Often the biggest obstacle to home ownership is a down payment. People think they should get thousands of dirhams, riyals, pounds or dollars in advance. However, if you have good credit and a decent job, you can get a home mortgage below zero. You can also fund some of the closing costs in addition to asking the seller to help you pay a large portion of the purchase costs. With mortgage financing plans today, you might be surprised to find out how much home you can buy with payments similar to what you currently pay on rent.
Housing in the extremities
You may have to exit the main urban areas to buy a house. This is why so many people move around the outskirts of cities. The cost of affordable housing is much lower in remote areas than crowded places but so are rents. If you are renting an apartment for 10 thousand dirhams a month or more in GBR in Dubai, you can buy an apartment worth less than one million dirhams in Arabian Ranches in Dubai and you pay the bank a premium less than half the house rent.
If these sums are high for you, check your local area. The monthly rent may be lower, and the cost of buying a home is also lower. Here you can go to the bank for a mortgage and find out which house you can buy.
If you are a tenant, set one of your priorities in purchasing your home.
