Unfortunately, owning a home is an unfulfilled dream for many people despite the numerous benefits that come with having one. For example, purchasing a house is an alternative form of investment. In fact, buying and selling it may lead to better returns on your investment that investing in the stock market would.
• Tax Break
Federal and state governments already know that owning a house is a difficult task for many people. Therefore, they provide a tax break in the housing market to encourage home ownership. Take advantage of this tax break because you will not receive this as a tenant. For example, payments on PMI, Private Mortgage Insurance, attract numerous tax benefits.
• Stable Costs
Purchasing a home stabilizes your costs over an extended period because mortgage prices remain relatively stagnant until your final payment is complete. Rent, on the other hand, changes dramatically depending on the prevailing economic conditions.
In other cases, property owners increase prices arbitrarily because they want extra money. Buy a home so that you can stabilize your costs.
• Control Over Your Home
Owning a house gives you control over it. For example, you can renovate entire sections of it including tearing down walls to redo the plumbing system. However, tenants are temporary occupants. Therefore, doing what they want to do with the house and its compound is subject to the approval of the property owner.
• Creating Bonds That Last
Having a permanent residence leads to long-term interactions with your neighbors. You will see their children grow. You will witness their struggles and triumphs. Your neighbors will see you through your trials as well. They will also laugh with you during times of joy. These bonds last, and they lead to flourishing friendships.
• Increase Your Access to Financial Instruments
You can access loans from banks using your home as a collateral. Then you can buy assets for your home, pay for your children’s education, or expand your business using these loans.
Another financial instrument that you can access using your house is a home equity line of credit. Financial institutions will give it to you based on the amount that you have already paid for it.
• Having a Sense of Accomplishment and Peace
As previously mentioned, many people have unfulfilled dreams of owning a home. Achieving this dream gives you a sense of accomplishment because buying a house is a challenging task. For example, paying off the mortgage takes years, but completing these payments is possible. Fortunately, you never have to worry about rent again.
• They Act As a Store of Value
Houses are valuable assets. In fact, their value appreciates in most cases. Therefore, owning a home means that you can resell it to someone for its market value. Having this kind of access to vast sums of money is critical especially when you are dealing with skyrocketing expenses. Some of these expenses include once-in-a-lifetime business opportunities or exorbitant medical bills.
The benefits of having your own home are numerous. In fact, they outweigh the costs of acquiring one. Start planning for it today. Talk to financial advisers who know everything there is to know about purchasing a home. Let them speak to you about mortgages and other financing tools. Then make an informed decision on the steps you will take to own a home.