They say home is where the heart is, but it’s also where the advantages lie. It’s a big decision to buy real estate, but doing so can lead to multiple benefits. From gaining equity to taking pride in where you live, there are many reasons to invest in the market. Read on to learn about the advantages of owning a home…
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1. Predictable Payments
When you buy a home, you know in advance how much you’ll be paying per month over the term of the mortgage. However, the same cannot be said for a landlord when you’re renting. When your lease comes to an end, they have the freedom to raise your rates, and often do.
2. Appreciating Value
When you live in a rented unit, you don’t have the benefit of real estate appreciation. Any market increase in property value becomes a perk for landlords, not their tenants.
In some places in California, home values were expected to rise by as much as 7 percent in January. That’s one of the main advantages of owning a home. It’s especially good news for those hoping to eventually sell, but it doesn’t improve the quality of life for renters.
3. Access To Equity
When you own your home, you can use the equity to consolidate high-interest debt, or even put it towards home improvements. You can take out a line of credit, or a loan at a fixed rate, to be paid back over a certain amount of time. Such advantages of owning a home can be useful in times of crisis.
Equity is the difference between how much remains on your mortgage and how much the property is assessed to be worth. The more a property increases in value, generally the more equity will be available to a homeowner.
4. Pride of Ownership
Buying real estate means it’s yours, and there are psychological advantages to owning a home that come with this sense of belonging and putting down roots. With that in mind, you might be more inclined to take care of the property and make improvements to it.
When you rent, depending on the rental agreement you may not be able to make any modifications at all, even if you wanted to spruce the place up a bit.
5. Tax Advantages to Owning a Home
Owning property has clear benefits at tax time. For example, you are able to write-off the mortgage interest from your home. You might also be able to deduct certain accounting expenses. Meanwhile, renters are not able to claim rent on their taxes.
6. More Privacy and Access
When you rent, you might have to share common areas with homeowners or other tenants. That could mean waiting for the kitchen or bathroom.
When you own, you have access to all of the house all of the time. You also don’t have to worry as much about other details, such as where to park, or noise from rowdy neighboring units.
Owning a Home Has Clear Benefits
Taking the plunge into the real estate market can be a bit scary the first time around, but not as much when you consider all of the advantages to owning a home.
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