The Benefits Of Home Ownership
The decision to purchase a
home is exciting and a major investment for your future. Because there is only so much of it to go
around, real estate is the top choice for many investors and the desire for
most families. This article is designed
to highlight some of the many benefits of home ownership and how buying a home
can often turn the American Dream into a reality.
One of the most profitable
markets in real estate is rentals, which means that many families are paying to
live in a home that isn't their own. In
some cases, renting a home is necessary.
For all others, the money that would be spent on rent could instead be
used to pay a mortgage. In fact, monthly
rent payments often exceed that of a typical mortgage payment. One of the greatest benefits of home
ownership is putting money into something that you can call your own and
knowing that the monthly payments are going toward your home's equity.
Speaking of equity, many
properties experience a growth in value as more development moves into the area
or the economy strengthens through an increase in job opportunities. If this happens, home values soar and owners
can bask in the glory of their newfound profit.
When you purchase a new car, it depreciates the moment that you drive
off of the lot. When you buy a home,
however, it has the potential to appreciate year after year. There are few things in life that can offer
you a return above and beyond your original purchase price, but a home can.
When you own a home, you
will enjoy the freedom of decorating and making any changes that you choose
without needing the permission of a landlord or property owner. In addition, you may even be able to use your
home's equity to finance some needed improvements and/or repairs. In some cases, these changes may even
increase the value of your home. An
upgraded kitchen or bathroom, hardwood flooring or an additional room are
examples of changes that could result in added value.
Another advantage of home
ownership is the tax benefits that are available. The interest paid on a home mortgage as well
as most property taxes paid are tax deductible.
For additional information on deducting mortgage interest and property
tax, consult the IRS or a tax professional.
In addition to providing yourself and your family with a feeling of stability and permanence, home ownership can also help strengthen your credit profile through timely mortgage payments and a steady financial history.