Many people across the country aspire to be homeowners, and while part of the desire to own a home comes from the idea that a place of your own represents security and individuality, there are plenty of other benefits you should think about if you’re planning to own a home in the near future. Despite the cost of purchasing a home, some of the financial benefits of being a homeowner provide paybacks along the way.
Owning a home now almost guarantees that its value will appreciate over time, meaning that the investment you make today will give back to you in the future. The majority of single-family homes increase in value at about 5% every year according to the National Association of Realtors® (NAR). Even during years which have been considered “bad” for housing, like the previous ten years, values are still higher now than they were at the time many homes were purchased.
Aside from appreciation, owning a home puts money back into your pocket when tax season comes around. You’re allowed to deduct the interest you pay on property taxes, mortgage payments, and some of the expenses you faced during the initial purchase of your home. There are other benefits to being a homeowner when it comes to taxes, which vary depending on the situation.
Consider also, your home builds equity as you make your mortgage payment, unlike rent. When you pay your mortgage, you’re not only building ownership interest, you’re also setting yourself up with a terrific savings plan. A home is a great asset to fall back on or sell should you need or want to cash out on the money you’ve put into your place of residence.
Improving your financial stability isn’t the only benefit when it comes to owning a home. Think of the stability you’re providing for yourself or your family. Living in a home which belongs to you means that you’ll stay in your chosen area, become part of that community, and develop close relationships with your friends and neighbors. Not to mention, when the home is yours, you can do whatever you want with it, you don’t have to ask a landlord for permission.
If you want to paint your front door an exciting new color, you’re allowed to (if you don’t live in an area with HOA rules). You can upgrade your light and plumbing fixtures, give your kitchen a makeover, and many other fun things throughout the time that you own your home. It’s also great to know that with your fixed-rate mortgage payment, you’re going to be looking at the same payment every month, so you can budget for any additional revamping you want to perform in your space.
A home is a one-of-a-kind investment which is unmatched by anything else. We love to share our expertise in homeownership as much as our insights on the current market – whatever your home or real estate needs may be, we’re here to help at Live Love South Bay, Intero Real Estate.