If you could peek at any person’s “life plan,” chances are good that almost every one of them will have “own a home” somewhere on the list. It’s one of the biggest ingredients that makes up the American dream!
Homeownership is more than just a romantic notion. And, while the purchasing process may seem challenging and you may wonder if it’s worth it, consider the many ways that homeowners benefit. There are several advantages to reap from taking the plunge. Here are the top 10 perks of owning a home.
First let’s talk about the financial benefits.
Every time you crank out that monthly mortgage payment, feel happy that part of it is going to your equity. This doesn’t happen when you pay rent. Building equity is an important step to your long-range financial success. You can borrow against it to finance home renovations, a child’s education, or a new business venture. If you decide to sell the home, you can recoup the equity at closing in the form of cash to use for anything you wish.
Related Read: How to Build Home Equity Like A Pro
Save On Taxes
There are a variety of tax advantages available when you own a home. First off, the interest and real-estate taxes are tax-deductible from your federal income tax. You can also deduct closing fees. These deductions can make a big impact to your tax bill, especially the first few years you own the home.
Related Read: Being a Homeowner has Multiple Tax Benefits
It’s easier to maintain a budget if you know approximately how much your bills are going to be every month. With a fixed-rate mortgage loan, you stabilize your living costs, since your monthly principal and interest payments will remain the same over time. Your actual mortgage payment may change slightly, however, due to fluctuations in property taxes or homeowners insurance that may be included as part of your overall payment. Rent, on the other hand, can potentially have a significant increase every year, making it more difficult to budget. As you get raises in your job, your mortgage payment will become less of a percentage of your income, making your payment less of a burden as time passes.
Build Your Credit
Home ownership helps your credit score, while paying rent does not. One of the biggest factors in building a high credit score is on-time payments. A mortgage loan gives you a chance to pay on time every month, which your lender will report to all three credit bureaus. These prompt payments, over time, build your positive credit history and raise your credit score.
Eventually Lowers Expenses
Perhaps the best news about homeownership is that, eventually, you pay off your house and own it outright! Depending on your mortgage, this may take 10, 15, or even 30 years. Once your mortgage debt is settled, you can allocate the money you used for your payment to savings, retirement, or you can spend it on a new vehicle or a vacation you’ve always wanted to take.
Houses Appreciate Over Time
Real estate can be an excellent investment. Even a property that increases in value by only a small percentage per year is eventually worth much more than you paid for it. Sell it after several years and you’ll most likely clear a tidy bundle of cash.
Financial perks aren’t the only types of advantages that come with home ownership. Now we’ll look at the personal benefits.
Greater Privacy/More Independence
Living with parents or renting a place with a roommate may seem economical but allows for much less privacy than buying your own home. When you purchase a house, you are able to kick back, play the music loudly, or have guests over whenever you want. Plus, you don’t have to deal with anyone else’s messy habits or nosy questions (sorry, mom!).
Moving every time your rent increases can keep you in limbo most of your life. Owning your own home allows you to put down some roots and get comfortable in your space for the long-term. Instead of worrying about where you’re going to live, you can focus on getting ahead in your job or starting a family.
Decorate In Your Style
You may be sick of the white walls and regulations of picky landlords. Once you own a home, you can unleash your personal style in every room. Paint your walls a warm tone, add new flooring, hang interesting light fixtures, change out the shower heads, and install new window treatments. You can make your space feel and look exactly like you want it.
Enjoy Community Involvement
Another big perk of owning your own home is that it gives you a chance to meet and form relationships with people in your neighborhood that could last the rest of your life. You can also get involved in activities in your community. Join non-profits, parent groups, and other area organizations. Getting involved will give you a sense of purpose and accomplishment.
Yes, buying and owning a house may seem a bit intimidating and like you’re signing your life away. But homeownership’s perks far outweigh the perceived negative aspects. Seriously consider how the financial and personal advantages of being a homeowner will positively affect your life, and then make your decision.
Related Read: Knowing When You’re Ready to Buy a Home