The following four tips on reasons to be a home owner should convince you to consider this major purchase. It doesn’t matter if you are considering buying in a low or high market, your investment will grow over time. Consider the following reasons are given from Premier One to buy houses for Sale Charleston SC rather than continue to be a renter.
1. Real Estate is a Necessity: Real estate is at the very core of human existence. We all have three important basic needs: food, clothing and shelter. Our world continues to expand as more and more people are being born every day. In addition, there continues to be larger migrations of people from rural areas to more populated locations. Therefore, people will always have the need for temporary lodging, permanent shelter and places to conduct business.
2. Hedge Against Inflation: Inflation is the invisible force eating away at the purchasing power of our dollars. A dollar, however, doesn’t buy today what it once used to. It is also evident that the quality of goods our dollars purchase is also diminished. For instance, the McDonald’s “Big Mac” has become progressively smaller year after year. Plus, when we purchase a box of our favorite breakfast cereal, the bag inside the box is practically half empty.
From the tenant’s perspective, rent seems to go up constantly and anyone on a fixed income may find it very difficult to keep up with the cost of living increases. The owner of the property also feels the effects of inflation in the form of increased property related expenses, taxes, utilities and maintenance costs. As property costs rise, owners typically pass these costs on to their tenants in the form of increased rents and fees. Furthermore as inflation increases so do property values; owners will often benefit from the property appreciation.
3. Production of Income: The most attractive reason for being a home owner is in its ability to produce passive income for the property owner. Rent is accruing daily while payments made by the tenants pay down debt balances and produce predictable profits. Once the property is free and clear, the portion of income that was once used to service the debt payments now goes into the owner’s pocket.
4. Appreciation in Value: Due to inflation, property appreciates in value. Usually, this statement is generally true. While there are no guarantees, if care is taken with regards to timing of the acquisition and trends in the overall marketplace, real estate tends to perform well when inflationary conditions are flat with some moderate expansion.