Homeownership comes with some benefits. Out of these benefits/advantages are some I would like to talk about. Making a decision to own a home is something everyone should consider at some point in life. Some people have different views when it comes to homeownership due to their past experience or what someone told them. The following advantages and benefits of homeownership will definitely give you a better understanding.
1. Cash savings for future use
Whenever you borrow money to purchase a home, you are required to make monthly mortgage payments. That is one of the things you do during your homeownership years. Homeownership comes with monthly or biweekly mortgage payments depending on how you set it up with your lender during your loan process. Each time you make a payment, your principal goes down. Over the course of the years, you will be building
equity because you are making monthly payments. This gets better when the property appreciates more in the future. If you decide to sell your home in the near future you will end up getting a nice check at the settlement table. This is cash for you to use to either put a nice down payment on another property or use it for something else. Homeownership is something to consider.
2. Extra space
Unless you are downsizing, there is a possibility that the space you will get in a home will be bigger than the space in a small apartment. That is
another benefit of homeownership. If you need more space, homeownership can get you the space you need.
3. Homeownership is less expensive than renting
If you buy a property today and you have a monthly mortgage payment for $2000, when you decide to rent that same property to a tenant for $2000 a month, basically you are not making profit. You will probably rent that property for more than $2000 a month so you can make some profit. Landlords always add anywhere from $300 to $1000 so they can make profit depending on the area. Homeownership can save you money while renting can make you pay more money. It is up to you to decide whether you want to be a tenant or a homeowner.
4. No rules to follow from the landlord
Homeownership puts you in the category of landlords and you get to make your own rules. As a homeowner, you have the freedom and the flexibility to follow your own rules. Again, homeownership puts you in the position of a landlord.
5. Principal and Interest do not go up
When you become a homeowner and you have a fixed mortgage rate, your principal and interest rates do not go up. This helps you to have a fixed
monthly payment. You may experience some changes in your homeowners insurance, but you can as well shop for a lower rate in case your insurance goes up. Your taxes may go up depending on the city that you live in. Filing for homestead exemptions may also help save you some money on your annual tax bill. Please consult with your CPA / Accountant to see if you qualify for homestead exemption because every jurisdiction is different.
6. Tax benefits
Homeownership can give you some tax benefits. Please talk to your CPA or accountant to find out about all tax benefits you can get. You may be qualified to get some benefits due to your monthly interest payments.
Depending on your situation, you may have the ability to get some nice deductions when filing your taxes. Again, please consult with your CPA or
your accountant for more information when you become a homeowner.
7. Better credit rating
Once you become a homeowner and you make monthly payments on time, the payment history will reflect on your credit profile. You will see some improvements on your credit profile in the future due to your regular and on time mortgage payments. That is another benefit of homeownership. Your on time monthly payment gives you credibility before other financial institutions and opens other doors for you in the near future when you apply for loan or credit.
8. Ability to change the layout of your home
Basically when you own a home, you can decide to make some changes on the layout. Some changes/reconstruction may need permits from your city or your lender’s approval If it is a big and major construction. In any case, you have the freedom to make changes compared to when you are renting a home. Please consult with your contractor / city or lender to seek for approval if you don’t know the steps to take.
9. You are the owner.
Homeownership makes you an owner after you purchase a home. You can easily say: “ This is my home”. You are the landlord, you are the owner, and there is a joy that comes with homeownership.
10. Location
Homeownership gives you the flexibility to choose the location where you want to live. You can as well purchase land and build a new home in a
particular location that you desire.
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