7 Benefits of Owning a House
Have you ever wondered why people choose to buy a home rather than rent? Sure, it’s certainly cheaper over time – especially with the way rent prices are skyrocketing – but there may be more to it than you realize. Buying a home is a decision that is costly upfront but offers a wealth of benefits – both financial and personal.
Freedom to personalize your space.
When you own a house rather than renting one, you no longer need to worry about the terms in your lease agreement. Have you been itching to paint your walls a certain color? Go for it. Have you always wanted a certain backsplash in the kitchen? Install it. Owning a house provides you the freedom to renovate and customize every aspect of your space to your liking.
Maintain stable housing costs year after year.
When renting a home, you are subject to drastic price increases each time you renew your lease or move apartments. Owning a house is pricey up front with closing costs, down payments, potential repair costs, etc. but once you get settled, you can count on your monthly mortgage to maintain its consistency. With a fixed-rate loan, your monthly payments will stay the same month to month; the only difference being your property taxes and repair costs.
Owning a house is an appreciating investment.
In general, real estate prices increase over the years, in turn, providing one of the greatest benefits of owning a house. With home prices increasing, your home is likely to appreciate in value, providing you with a promising return on investment. In fact, Raleigh’s home values have gone up 30.8% over the past year, according to Zillow’s Home Value Index. All in all, if you purchase a home and live in it long enough, the chances are you can sell the home for a large profit.
Opportunity to build equity.
What is home equity? Equity is the difference between what you have left to pay on your mortgage loan and what your home is currently worth. Hence, the more you pay off your mortgage and the more your home appreciates in value, the more equity you build. So what happens with equity? Once you sell your home, you are paid your home equity in cash!
Property tax deduction.
When owning a house, you may be eligible for substantial property tax deductions. Here is a brief list of tax deductions to consider based on this article by Lending Tree:
- Mortgage interest deduction
- Mortgage insurance deduction
- Mortgage points deduction
- State and local tax deduction
- Tax-free profits on your home sale
- Residential energy credit
- Home office deduction
- Standard deduction
Owning a house helps build credit.
Taking a mortgage out on a house and consistently making on-time payments provides an opportunity to significantly build your credit. Your credit score is a crucial aspect of your financial health and allows you access to better interest rates, better credit cards, insurance discounts, and so on.
Your home, your rules.
Owning a house gives you not only the freedom to customize it but also the freedom to do whatever it is you want. For example, some renters have trouble finding a place to live with their pets. With a home of your own, you can dwell in it as you please, or even rent it out to others!
If you are ready to take the leap and become a first-time homeowner, we are here to help guide you to success. Contact us today!