The-benefits-of-buying-a-home-en

Becoming a homeowner is the right decision

  • Why Buy?

    The most important reasons for buying a home are peace of mind, independence, and security. The financial rewards of becoming a homeowner are many and by doing so you will be making a wise investment in your future and that of your family's. Buying a home means that you have equity and that equity can be used as a financial warranty if you need to borrow in the future. Owning a home doesn't just build equity it saves you from wasting your hard-earned money on rent.  

    Based on the graph above, yearly rental costs gradually increase while the yearly home loan installments remain the same. Yearly rent is factored at 8% of home value with a Home Finance Rate of 5.25% for a period of 20 years. Average yearly increase in rent is considered as 2.83%.
    The figures used are approximate

  • Are you worried about the long-term commitment?

    Buying a home is indeed a commitment for a long period of time, but it is also a long-term savings plan, like retirement or your children's education. At the end of the finance term, the rewards are significant, and the feeling of owning your very own home outright is indescribable. Just remember, renting is also a long-term commitment, one that you will be paying for the rest of your life.

  • See why buying is cheaper than renting?

    See the comparison we made between buying a home and renting for 20 years and 30 years

    Our Profit Deduction with early settlement is limited to 3 months profit

    Total profits are not divided equally over the monthly installments. The profits in the first few years are higher than the ones in the last few years.

    Our Profit Deduction with early settlement

    1st year of finance      1 month of profit

    2nd year onwards     6 months of profit

     

    Our Profit Deduction with early settlement is limited to 3 months profit.

    For a home price of SR 500,000, your monthly installment to buy is SR 550 less than your average rental. And after 20 years, the home is yours.
    Yearly rental factored at 8% of the home value with a Home Finance Rate of 4.25% yearly.
    Average yearly increase in rent is factored at 2.83%.
    The figures used are approximate.

    30 years finance (home price: SR 500,000)

    Monthly Rent SR 7,900
    Monthly Installment to Buy SR 2,700
    Monthly Difference SR 5,200

    For a home price of SR 500,000, and a down payment of SR 50,000 (10% of the home price), your monthly installment to buy is SR 5,200 less than your average monthly rent. And after 30 years, the home is yours.

    Yearly rental is factored 8% of home value and average yearly increase in rent is considered as 2.83%.
    Home Finance Rate: 3.25% yearly for 30 years.
    The rate is fixed for first 5 years and then reviewed every 3 years.
    Rate changes are not considered for this comparison.
    The figures used are approximate.