While buying a home is a huge step and can be expensive, there are plenty of long-term advantages that many people are not aware of. The benefits of homeownership include both financial and emotional pride in ownership and the feeling of security. Here are 4 more benefits to homeownership.
1. Stronger Financial Future
With homeownership, you can build a financial future. As you build equity in your home over time you are increasing your net worth. Putting money into homeownership versus renting an apartment, you are building an investment as time goes on. Over time equity is built up and if enough equity is built you can use your house to borrow for expenses such as college, home improvements, or any other life emergencies.
2. Tax Benefits
In most cases, the interest you pay, and property taxes can be deducted from your tax returns. Comparably renters do not have this advantage. While some states allow rent to be included in taxes, homeowners can claim a much larger exemption from the homestead exemption and other tax exemptions depending on the county they reside in.
3. Payments are Stable
Most homeowners take out a 15-year or 30-year mortgage and the payments are the same each month. If interest rates decrease, you can refinance, thus lowering your payments even further. When all payments are made 15 or 30 years, or even earlier when paying to principal above your normal payments, you have no payments after that. Now your cost of ownership becomes just yearly property taxes and property maintenance. The cost of rent increases and can be unpredictable according to your landlord’s decision.
4. Community, Freedom, and Pride of Ownership
With homeownership, there is a sense of belonging to a community thus forming relationships with neighbors. Whether it is outdoors or indoors, you have the freedom to do “whatever” you want; you can redo the floors, paint the walls, garden, create an outdoor patio, and much more. There is a sense of “pride” that comes from homeownership.
Aside from getting a place to call home, there are numerous benefits of homeownership, these are just some of them as the market continues to grow. Maybe right now is the best time to consider finally investing in a home. If the time is now to purchase your dream home, contact Express Title today, to help you protect your new home with title insurance.