Without a doubt, buying a home is one of the biggest financial decisions a person can make. While homeownership is a cornerstone of the “American Dream,” a lot of people, especially first-time buyers, may not fully understand some of the benefits of owning a home.
Buying a home creates an opportunity to create a strong financial future for your family and a sense of stability. Here are some of the advantages of homeownership that make it so appealing for many people.
There are lots of financial benefits
Most of the benefits you’ll read about the deal with the financial side of homeownership. Buying a home is a significant up-front investment that can pay off in the long run. Here are a few of the financial benefits:
Build equity: the first financial benefit that comes to mind is equity. Equity is the value of an asset, in this case, your home, minus the amount owed. Your home’s equity increases each time you pay your mortgage.
Build wealth: as your home’s value increases, so does your equity, giving you the ability to sell your home for a profit. This extra money can fund the purchase of your next house.
And tax benefits!
Homeowners can take advantage of several tax benefits (check with a tax professional to verify eligibility). Most notably, the mortgage interest deduction allows homeowners to deduct the interest paid on their mortgage, thus reducing their taxable income. They may also be able to claim property tax deductions.
Predictable monthly expenses
Since you won’t be changing the terms of your mortgage every year, you can rest assured knowing your base housing costs will remain the same. You won’t have to worry about annual rent increases that could potentially price you out of a particular location. This stability will let you make better financial decisions toward your personal financial goals.
Living in a single-family home means you don’t have to worry about shared walls or floors, allowing you greater peace and privacy. No more having to yell at the neighbors to turn down their music or tiptoe around.
People tend to stay in place longer when they buy a home. You won’t have to worry about finding a new place to live each year or worry about a constantly rotating group of neighbors.
You’re free to create your dream home
One of the biggest draws of homeownership is the freedom to create the home you’ve always wanted. You don’t have to worry about getting permission from a landlord before painting or making changes to your home, you can change the flooring or other fixtures in your home, get a pet – all the things that make a house your home.
Homeownership continues to be an important milestone. If owning a home is part of your dream, we’re here to help. Southern Homes has been dedicated to our customers for close to 30 years, and we remain committed to providing beautiful, affordable homes. We want to help you build or find your dream home.