Eight Benefits of Owning a Home
Owning a home is often referred to as the “American Dream” There are many obvious benefits of owning a home and some that are not so obvious. One of the first steps to buying a home is to determine whether owning a home is the right fit for yourself. it’s important when making any decision that you strongly consider both the PROs and CONs of what you are deciding on. If you are currently living with family, friends or renting a property and you’re considering the purchase of a home, below are some of the best benefits of owning a home.
- Stable Monthly Payments
If you’re going to be buying a home by obtaining a mortgage, it’s highly likely that the mortgage product you’ll use for the purchase will be a fixed rate mortgage since they are the most popular type of mortgage. With a fixed rate mortgage comes stable monthly payments, which is one of the best benefits of owning a home.
One of the wildcards to renting a property is the unknown that comes with the monthly payments, year over year. It’s very plausible that the monthly rent payments for a property can change from year to year upon the renewal of a lease agreement.
- Opportunities to Build Equity
Equity in real estate is the probable market value of a home minus any lines against the property, such as a mortgage. One of the great advantages of home ownership is the opportunity to build equity.
The longer that you own a home, the more you will pay towards the principle balance liens. As the balance of any liens against a property gets lower and hopefully the value of the property increases, the larger the equity.
- Cheaper Than Renting Overtime
There are many costs to buying a home, such as the down payment, appraisal fee, and homeowners insurance. The upfront cost to buy a home is substantially more than just paying monthly rent to a landlord, however overtime owning a home is cheaper than renting which is a great benefit.
- Owning a Home Provides Tax Advantages
A great benefit of owning a home are the tax advantages that it provides. Buyers who have a strong understanding of important real state tax tips quickly realize that owning a home provides some solid tax advantages.
- Freedom to Make Changes
A huge benefit of owning a home is the ability and freedom to make changes. Whether it’s something as simple as painting a bedroom or something complex such as a complete kitchen remodel, when you own a home you can make changes as you see fit.
- Build your credit
There are many factors that impact a person’s credit score, one of the most important being the length of credit history. A great tip for improving a credit score is to improve average length of the credit accounts and owning a home can accomplish this.
- Solid Investment
In most cases real state will appreciate, depending on the local market conditions. Real estate markets are different even if they are close in proximity and its critical before buying a home you have an idea what to expect in terms of potential appreciation over the years.
- Improved Stability
One common trend among people who rent a home or apartment is they’re frequently on the move to new places, it’s uncommon for people to remain in one apartment for 5,10, or 15 years. Owning a home improves stability for many people, which is a nice reward. Since buying a home is a long-term commitment and rather large investment, moving every few years in unlikely.