Are you thinking of buying a home? The census shows that the homeownership rate in America is 67.9%. With over half of America choosing to buy a house, what is the draw to owning over renting? Read on to learn the benefits of being a homeowner.
Saving Money
It often costs far less to own a home than it does to rent. When you own the home, you simply pay your mortgage company back.
But, when you rent, you pay the landlord who wants to both make a profit and pay off their mortgage on the house. They may also add maintenance fees into the cost of rent, just in case things break.
You also receive an annual income tax deduction for mortgage interest and property taxes when owning a home. If you rent, however, property taxes increase for the landlord, which means your cost of living goes up as well.
Improving Credit
A good credit score opens up access for you to make big purchases in the future. It allows you to take out low-interest loans and credit cards with favorable terms.
When you first take out a mortgage, it may appear to hurt your credit as you owe a lot. But, in the long-term, this purchase will strengthen your credit as you continue to make your payments on time.
Building Equity
Home equity refers to the portion of the property that you paid for and own. Each time you make a mortgage payment, you build equity.
This huge asset counts towards your net worth. It also works similarly to credit by allowing you to take larger loans with your equity.
Price appreciation refers to the rising value of properties. This gradually happens over time.
Hits to the economy sometimes bring the value down, but historically, the housing market always recovers and then goes back up in value. This means that by the time you decide to sell, your home could be worth way more than your purchasing price.
It’s Yours
Buying the home means that every single dollar you put into it goes towards something that belongs to you. When you rent, on the other hand, every dollar you put in goes towards right now but does not exist for you in the future.
Any upgrading you hope for requires permission in a rental. And, if you do put in the time, money, and effort to improve the home, it still is not yours the minute you move out, and you get no return on it.
One of the biggest benefits of owning a home is that it is all yours. Owning means that you do whatever you want, within the limits of the law. And whatever changes you make ultimately belong to you.
Enjoy the Benefits of Being a Homeowner
Purchasing a home opens up a new and exciting chapter of life and there are plenty of benefits of being a homeowner. It takes off the burden of paying into something that somebody else owns and helps you develop financial security.
Your new home means endless project possibilities. Find DIY tips in the home section of our website!
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