Curious about just what benefits of owning a home are out there for homebuyers? Most people know that a home is much more than merely four walls and a roof. Owning a home can be an excellent factor to kindle a wide range of positive emotions and thoughts in you. Homeownership is certainly known as a pillar of the American dream.
Although many people either cannot afford to or simply choose not to pursue this dream, those who purchase real estate usually see major financial benefits to homeownership. Also, for many, owning a new home brings a sense of security. In contrast to others, it is about convenience and comfort. Another benefit of owning a home is that, to some, it is a symbol of accomplishment and status.
However, the importance of the monetary aspect cannot be overlooked because it is usually the most significant financial transaction in the life of an average American. Owning a home vs. renting is a decision that many people grapple with. If you currently live with your family or friends or are renting a property, here are some of the most important benefits of homeownership:
Emotional Security and Stability
When you buy a new house, you provide your family with their own space; a home. At the end of a stressful day at work, along with a tiresome commute, returning to your home brings a sense of comfort and security, which is irreplaceable. Did you know that based upon a Harvard study, owning a home can also result in better mental health via the feeling of accomplishment?
Also, many studies indicate that children benefit considerably from the stability and security of a home. This is manifested in higher test scores and considerably higher rates of high school graduation.
Buying is More Affordable than Renting
Initially, it might be cheaper to rent than buy. You know that a down payment on a home can feel overwhelmingly big. However, take some time to think about investing in your future. In most cities, if you compare the monthly mortgage of a home with a comparable rental property, the cost of homeownership is usually much less. And over time, as you repay the interest portion of the loan, you will start paying more of the principal portion.
It can be argued that a home is an important long-term investment, rather than a short-term rental place where you put your bean bag chair and futon.
Tax Benefits of Owning a Home
It is well documented that you get various tax breaks for owning a home. As a homeowner, you can deduct mortgage interest and various property taxes when you fill out your yearly tax returns. These tax deductions for property taxes as well as mortgage interest can easily save you hundreds of dollars per month in taxes. These tax savings can make owning a new home just as economical, if not cheaper, as renting.
Please ask your CPA or Tax Preparer for more information. They can provide you with actual details.
As you know that rent is an expense, there is a general tendency for renters to reduce expenditure. So, you might end up compromising on several important aspects, like location, amenities, and size. In contrast, when you purchase a house, you will make sure that your chosen property meets all your needs and expectations.
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With so many homeownership benefits, it is sensible to buy your own home. Not only does it offer you stability and security for today and the future, it often makes financial investment sense as well!
If you think that homeownership might be right for you, take the time to speak to one of our Loan Officers about all of the affordable financing options available to you, including some First Time Homebuyer programs. They can help you determine the right program…the price ranges that fit your budget…and can even introduce you to a reliable real estate agent to help you search for the perfect home!