Thinking about taking the home ownership plunge? The decision to buy a home can be a nerve-wracking one, but it can really pay off in the end. When you find the right home for your situation, the advantages of home ownership far outweigh any concerns. Some benefits of home ownership include:
- Tax Deductions. Homeownership can save you some money at tax time. Both property taxes and the interest on your mortgage are fully deductible from your taxable income. When your mortgage is new and the majority of your payments consist of interest, this can give you a pretty big tax break. In addition, some portion of your closing costs may be deductible.
- Appreciation. Property values rise over time. That’s why real estate is one of the safest investments available as long as you’re willing to hang on to it for a while. Over time, your home will become worth much more than you initially paid for it, giving you a handsome return on your investment.
- Equity. As you reduce the principal on your mortgage by making payments and the value of your home appreciates, you will build equity. Equity is the portion of your home you own compared to the portion the bank still owns. You can borrow against the equity in your home for home improvement projects or other necessities. You can also let your equity accumulate, which will give you a better profit when it comes time to sell your home.
- Stability. When renting, your monthly housing payments can fluctuate with the real estate market, making it difficult to map your financial future. A mortgage with a fixed rate locks in your housing payments at a price you’re comfortable with, eliminating the guesswork. Even with a variable rate mortgage, there will be a cap on how high your payments can get. Owning a home also provides stability for your family because you’re more likely to stay in the same place long-term. This allows you to be more active in your community and build lasting friendships.
- Freedom. Owning your own home can be a breath of fresh air when compared to apartment living. You can choose your own paint colors, carpet, and kitchen appliances. You can even knock down a wall if you feel the need, and it will probably just add to the value of your home.
Buying a home is a big decision, but it doesn’t have to be a stressful one. Finding the right home can be a great asset for your family now and for your future.