The Benefits You Get from Owning a Home, Rather Than Renting
Buying a home is one of the biggest decisions you make in your life. But while it isn’t that easy (given all the important things you have to consider), it can be very rewarding. To help you decide that this is a wise move for you, here are the benefits you get from opting for homes for sale rather than rentals.
It’s a smart investment
While home prices go up and down over a short period, staying in your own house for a long time can increase its value, giving you a considerable return on investment. If you want to know that this provides you the most economic benefits, you can try comparing it with renting using a “rent vs buy” calculator. Like other buyers who are successful in the decision they made, you should take into account important factors, like annual appreciation, rental price increase, taxes, interest rates, etc.
You can create the home you really want
By buying a home, you’ll have the freedom to create the living environment you really want. You can choose what to put in it, such as the paint color, type of flooring and everything that can make it your haven. You can enjoy all these without having to get approval from a landlord.
You’ll be able to build a good credit history
Buying a home and paying the monthly mortgage on time will demonstrate to lenders that you’re a good borrower and will lower the risk of you defaulting on a loan. This good credit history will help you easily secure funds for something big in the future, like a new car or a home improvement project.
You can build equity
By subtracting the amount you borrowed for your home from the property’s total value, you’ll get the amount of your home’s equity. This is the dollar value of the house that actually belongs to you.
One way to build equity is through your mortgage. Every time you make a monthly payment, a portion of it goes toward reducing your loan. In a sense, this is a form of savings that increase the equity of your home. Another way is to simply increase your property’s value.
When needed, you can borrow against your home’s equity to meet some of your other financial needs, such as medical or education expenses. You can also use the loan to pay off high-interest credit card debts, as its interest rate is usually lower and related payments are tax deductable.
You can enjoy tax deductions
Homeownership in any city in the US, like Humble and Houston, can give you favorable financial benefits, most importantly reduced amounts of tax you pay every year. Remember that your property tax and mortgage interest payments can be deducted from your federal and state taxes. In the early years of your mortgage (when the interest makes up the most of its monthly payments), tax deductions can put a considerable amount of cash back into your pocket. Other things that can be tax deductable are closing costs and loan discount points.
Considering these benefits, it’s definitely wise to look for homes for sale and buy one of your own. Just don’t forget to seek help from professionals, particularly real estate brokers, to come up with the right decision.