Buying a House; The Benefits of Home Ownership

For most people, owning a home is considered to be a fulfilment of the American dream and it’s used as a measure of success in life. To others, it is a nightmare since it’s a huge decision of a lifetime and it requires you to be ready financially. When thinking of buying a house, so many things run through your mind, and you most likely ask yourself a lot of questions. Remember, this is a significant financial move and you want to make sure you reap the maximum benefits when buying the home. Let’s take a look at some of the benefits of owning a home:

• Privacy

Owning a home brings along great privacy unlike living in an apartment. When living in a rented space, the owner has the right to visit the property and can do it a lot. When the time comes for renovations, the owner can go in at any time with little regard to your privacy and they are entitled to enter any room for inspection. When you have your own house, you are the owner, and you determine the time anyone visits your home, how long they can stay and where they can or can’t go in the house.

• Good Investment

Houses usually increase in value and build equity.  This is the reason so many people are investing in real estate. When you buy a home, the value generally increases in the long run, and if you feel like selling it in the future, the home most likely will be sold at a higher price than what you bought it for. Your results may vary, but it’s usually profitable and a good investment of your time and money if you do it wisely.

• Predictable costs

When paying for a mortgage, the costs are more stable and predictable than renting. The charges are usually based on a fixed rate mortgage and compared to renting; the costs are far more stable. When renting, the owner can alter the terms of your lease once the agreed lease period is over rendering you powerless.

• Significant tax deductions

When you own a house, it reduces the amount you pay in income taxes every year. The property tax payments and mortgage interest are deductible from your federal taxes as well as numerous state taxes. This can help you save a large sum of money in the long run. When interest is the bulk of your monthly mortgage payment, the tax deductions can put a good amount of money back in your pocket.

• Building a strong credit history

Buying a home and consistently making the monthly payments on time helps create a good credit history. It serves as a demonstration to lenders that you are a good borrower and you will most likely not default on your loan. This helps you in future when you want to get a loan to buy a car, pay for other major expenses or make significant improvements to your home.

Becoming a homeowner requires a lot of responsibility, but it can be very rewarding. These are just some of the reasons why you may want to buy a home instead of renting.