If you’re currently living with family, friends, or renting a property and you’re considering the purchase of a home, below are some of the best benefits of owning a home. Understanding what the benefits of home ownership are can really help make the decision whether to buy a home easy.
Equity and Appreciation
Your equity in your home is the amount of money you can sell it for minus what you still owe on it. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. Instead of throwing your money away by giving it to a landlord, you can be paying down a mortgage. In a sense you are paying yourself each month in the form of increased equity. Furthermore, appreciation can cause your equity to grow even more quickly. Appreciation is the increase in a home's value over time. The rate at which a home appreciates or depreciates fluctuates and is impacted by a variety of factors. Historically, home values appreciate over time. Central Ohio homeowners have enjoyed the benefits of strong appreciation in recent years.
As a homeowner, there are a number of tax deductions that you may be able to claim. Your home can save you money! Be sure to consult your tax professional and determine if you are eligible to take advantage of deductions that might be available to you.
- Mortgage interest payments
- Real estate taxes
- Mortgage points
- Some types of home improvements
- If you have a home office a portion of utilities, home insurance, property taxes, mortgage interest, and home repairs could be deducted as a business expense
Strengthen Your Credit
By consistently making your mortgage payments on time, you bolster your credit history. Lenders view you as a good borrower. You may become eligible for better interest rates and larger lines of credit. This will be helpful in the future when you need other loans for buying a car, making improvements to your home, or paying other major expenses.
The monthly outlay of owning a home is often much less than paying rent. Buying is the more affordable choice for many people. Mortgage rates are currently low, making it an economically wise choice to purchase a home sooner than later. There are upfront costs associated with buying a home – down payment, closing costs, etc. However there are mortgage loans that require little to no down payment, and in some cases you may not need to pay out of pocket for closing costs. Typically the longer you own your home, the more impactful the financial savings can be.
Freedom and Enjoyment – It’s Yours!
Homeownership offers tremendous freedom to create the living environment that you have always wanted. You can own pets, paint rooms whatever color you like, make changes to flooring, replace the kitchen countertop, and do all the things that make a house your home – all without having to get approval from a landlord. Live life how you want. You can call your home “Home” for as long as you want. No need to move from apartment to apartment and deal with rising rent payments.
These are just a few of the many fantastic benefits of home ownership. But is owning right for you? It’s important that you strongly consider both the pro’s and con’s before jumping in feet first. Explore your options with a Realtor and do your homework. If buying a home makes sense for you, then soon you could be enjoying all it has to offer!