5 Advantages Of Owning A Home: Benefits To Home Ownership
Owning a home provides security and freedom unless you plan on selling your home fast to reinvest. It is one of the most rewarding assets that one should ever own. However, many people think that renting is a better option compared to buying a house especially when they are struggling to save money and have huge amounts of debts. And with the prices of homes skyrocketing and the real estate bubble bursting, many people now doubt whether owning a house is really a good investment or is it better to just rent a house. The answer is YES. Despite the economic hurdles and setbacks, owning a house still has more advantages than renting and this article will convince you why you need to invest in a house. Below are the 5 advantages of owning a home. However if you are distressed owning a home can further hinder you and selling to a cash home buyer may be a quick solution.
One of the 5 Advantages Of Owning A Home: Financial Stability
This is probably the most important benefit of owning a house. While you still pay your monthly mortgage payments, it is still cheaper than paying the rent. In fact, most rental prices fluctuate and increase with over time due to inflation. If you live in big cities the increase of the rent is about 6.1% annually. Thus one of the 5 advantages of owning a home is that home prices are often set at a fixed-rate mortgage thus they require a steady monthly payment year after year. Aside from not paying rent, buying a home also means that there are many loans that are available for you to afford buying a home. In most cases, you are not required to make a 20% down payment when buying your first home especially if you make loans like USDA, VA, and FHA. Because of this benefit, most homeowners have a household income that is less than $100,000 indicating that it is possible for people to own a house with a single salary.
Improve Financial Portfolio
Owning a home can improve your financial portfolio especially for first-time homebuyers. Compared to renting a house, the mortgage payment that you make builds your home value and equity. Depending on how fast you pay your mortgage, you can watch the equity grow over time. Building the equity is very important as it builds you with a financial cushion that you can use for your retirement or for another property. There are many ways to build your equity faster and these include paying your principal and avoiding repayment penalties, refinancing your loan to 15 years, making a larger down payment, and doing home improvement projects to increase the value of your home.
One of the 5 advantages of owning a home is that you can qualify for tax deductions. Tax deduction refers to the money that you can get back in your tax return. The tax deductions can range from claiming your actual home, insurance payments, and home improvement expenses. People who install green features on their homes can also benefit from tax breaks. You will be surprised by the various tax benefits of owning a home. Unfortunately, these tax breaks are only restricted to homeowners and not people who rent. In fact, most people who rent are actually paying their landlord so that they [landlord] can enjoy the tax benefits. To make the most out of tax benefits, it is crucial to talk to a tax professional for more information. It is also crucial to document all the expenses made on your home because you are going to need it once you file for your taxes.
No More Relocation
Moving constantly can be very difficult for many people. When you rent an apartment, you might be allowed to stay in the unit for a few years but there are times when you have to move out especially if the building owner wants to renovate the building or is completely selling the entire unit. Eventually, moving out can be a tiring and inconvenient thing. One of the 5 advantages of owning a home is that you can think of the things that you want to add to your home long-term. You can plan what kind of projects you want to add to your home so that you can start planning them out without the fear that somebody is going to stop you from implementing your plans. Once you find your dream home, you will not need to plan over and over because you won’t have to move anymore.
Having The Sense Of Community
Once you own a home, you move into a community or neighborhood. You can build or nurture a lasting relationship with your neighbors and the affairs of the neighborhood will also affect your well-being. You will also have to be invested in the local affairs within your neighborhood and you will care more about the safety of the community, taxation, government funding, and many others. What happens to your community matters to you, too. When buying a home, you will definitely have to scour which neighborhood is great for you and your family. And it is only natural for you to choose a home located in a safe environment. Owning a home allows you to live in a safe neighborhood that you have chosen, and you don’t have to worry about your landlord kicking you out unannounced. Aside from the 5 advantages of owning a home, there are still so many reasons why you need to buy a home, and these include having a better sense of freedom and better health. Studies show that living in your own home gives you less stress and more space for movement. The 5 advantages of owning a home do not stop at what is written in this article. So, if these reasons are not enough to convince you to own a house, we don’t know what will. For more information about selling your home and getting money to fund for your next purchase, be sure to visit us at Sell Quick California to know more about how to sell your current property and find your dream home.