4 Advantages of Owning a Home
For many, becoming a homeowner is a dream. The chance to build equity, invest in your future, or even paint the walls neon green makes owning a home a top bucket list item. Although renting can provide temporary and convenient housing, owning your own house offers far more financial and personal advantages. So if you’re considering whether or not to buy, here are four benefits of homeownership that you should consider.
It’s a Valuable Investment
Buying a home can be a great investment for your future! Unlike renting, homeownership allows for more long-term financially rewarding opportunities. Renters are oftentimes saddled with rising rent and a lack of equity-building opportunities. On the other hand, homeowners benefit from stable mortgage rates and the ability to invest in their homes. As a tenant, you make monthly payments on a property that you don’t own. Because of this, you miss out on the opportunity to build your own equity. Additionally, homes are appreciating rapidly in today’s market, which could result in a significant return on your investment if you choose to sell in the future.
It Provides More Peace and Stability
The privacy, peace, and stability that come with homeownership can also provide you and your family with a greater sense of security. For example, homeowners are more likely to feel like they belong in their community, and children can feel more connected to their peers at school. In addition to belongingness, homeownership also provides more financial support.
When renting, landlords can (and often do) raise the rent. However, when you own a home, your mortgage payment stays at a fixed rate, providing you with more stability in your finances. In addition to greater stability, you’ll also be building equity as you pay your mortgage. You’ll officially own your home once your mortgage is paid off! With no monthly payments, you can enjoy saving or spending extra cash.
You Can Benefit from Tax Breaks
To encourage homeownership, the IRS has provided several tax breaks for homeowners. This means homeowners can enjoy deducting state and local taxes, among other incentives. Some of the most common tax breaks are mortgage interest deductions, property taxes, and necessary home improvements.
As homeowners, property taxes apply at both state and local levels. Married couples filing jointly can deduct up to $10,000 of property taxes, and those who are single or married filing separately can each deduct $5,000. In addition to property taxes, homeowners can deduct between $375,000-$750,000 of their mortgage interest when filing taxes. With the potential to collect thousands of dollars in tax deduction benefits, homeowners reap significant financial rewards compared to renters.
You Have the Freedom to Personalize
Owning a home comes with the ability to personalize your space to fit your style. Want to tear down some walls? Create an open concept space. Think the kitchen’s outdated? Renovate it! Homeowners can freely modify their house however they like! No need to worry about your security deposit being withheld. Many homeowners consider personalizing their property to be a huge motivation for buying rather than renting. In addition to creating a space that suits you, home modifications can increase the value of your home—that is if you can bear to part with your beloved space.
Homeownership is a dream for many. Whether you’re considering if homeownership is right for you or you’re actively looking for your dream home, we’d love to help! Our team of expert Realtors is committed to helping you find the best home for your needs and budget. Call us at (717) 208-4240 or fill out contact form on our website to get started!