Benefits of Home Ownership
The choice to buy a home is exciting and a key investment for your future because there is only so much of it to go around. Real estate is the top choice for many investors and the need for most families. This blog is designed to show some of the many paybacks of home ownership and how buying a home can often turn the American Dream into a reality.
One of the most money making markets in real estate is rentals, which means that many families are paying to live in a home that isn't their own. In some cases, renting a home is needed. For all others, the money that would be spent on rent could instead be used to pay a mortgage. In fact, monthly rent payments often surpass that of a typical mortgage payment. One of the greatest benefits of home ownership is putting money into something that you can call your own and knowing that the monthly payments are going toward your home's equity.
Speaking of equity, many properties experience a appreciation in value as more development moves into the area or the economy reinforces through an increase in job opportunities. If this happens, home values rise and owners can bask in the glory of their newfound profit. When you purchase a new car, it devalues the moment that you drive off of the lot. When you buy a home, however, it has the possibility to appreciate year after year. There are few things in life that can offer you a return above and beyond your original purchase price, but a home can.
When you own a home, you will enjoy the liberty of decorating and making any upgrades that you choose without needing the permission of a landlord or property owner. In addition, you may even be able to use your home's equity to finance some needed upgrades and/or repairs. In some cases, these changes may even increase the value of your home. An upgraded kitchen or bathroom, hardwood flooring or an additional room are examples of changes that could result in added value.
Another advantage of home ownership is the tax benefits that are offered. The interest paid on a home mortgage as well as most property taxes paid are tax deductible. For additional information on deducting mortgage interest and property tax, consult the IRS or a tax professional.
In addition to providing yourself and your family with a feeling of stability, home ownership can also help support your credit profile through timely mortgage payments and a steady financial history.
Here are some other benefits you can get from owning a home:
· Improved children’s educational achievement. Families who own a home tend to be more financially stable, creating opportunities for parents to focus on positive parenting behavior that can lead to improved educational outcomes.
· Improved civic participation. Homeowners have a great financial stake in their neighborhoods, leading them to volunteer more and be more politically active.
· Improved health outcomes for families. Homeowners tend to report greater happiness and more control over their lives, leading to better physical and psychological health. Owner-occupied housing also tends to be better maintained than rental housing, leading to improved safety and health.
· Reduced neighborhood crime rates. Because crime rates can negatively impact property values, homeowners have more incentive to create and participate in voluntary crime prevention programs.
There are many reasons that owning a home makes sense. The financial reasons are powerful. The Akkus Group is here and ready to help you and give advice. Give us a call, we are more than happy to help you.