The American dream has always been to grow up and own the home of your dreams. While many rent due to the flexibility it provides, homeownership comes with many advantages. Many of these benefits come in the form of long-term payoffs, in contrast to renting, that may only be the cheaper option in the short-term. Here are some of the advantages that come along with buying a home that renters are missing out on.
Buying a home may seem like a way to lose money, but you are actually increasing your equity on a monthly basis. As you continue to pay your mortgage, the amount of money you owe the bank for your home decreases. You are able to keep more and more money if you decide to sell your home as you make the monthly payments. The home essentially becomes a savings account, but your money actually grows in this case. The value of your home rises as time passes, meaning you will be able to sell it for more money in the future. Your money not only stays with you in the form of your property, but it increases.
Owning a home allows you to live with much more financial stability. A fixed mortgage can’t be changed; on the other hand, your rent can be changed by your landlord for different reasons such as inflation. Even if you aren’t able to get a fixed rate mortgage on your home, it is much more predictable than rent, because you are able to decide on what type of mortgage you will be getting before buying your home.
The ability to deduct mortgage interests on your federal taxes is a huge advantage for homeowners. Interest payments are usually the largest part of mortgage payments during the early years of owning your home, so the tax deduction is fairly large for many. Property taxes and some closing fees can also be deducted, along with energy-efficiency improvements.
Finally, owning your own home allows you to have much more freedom with your property. You can customize your home to your liking. You may decide to knock down a wall in order to expand a room or redesign a bathroom. Whatever you decide, you have full control when you are the owner of your own home.
Owning your own home comes with many advantages once you decide to settle down. Homeowners are able to benefit much more financially from the ownership of property, and they are able to make decisions much more freely and comfortably. These were a few of the advantages that come along with homeownership, although there are many more.