“There are many advantages associated with homeownership. Aside from the fact that owning a home is a source of pride, there are several financial benefits to owning a home as well.
Getting a Break on Your Taxes
One perk you will enjoy when you buy your own piece of real estate is a break on your taxes. First time homebuyers can actually deduct the purchase from their income taxes. The same is true when purchasing a vacation home. Although you most likely aren’t going to run out and commit yourself to the purchase of a home just so you can get a break on your taxes, this is a nice benefit that makes the financial burden of the initial purchase a bit easier to overcome.
Taking Advantage of Loan Opportunities
When you buy a home, you will immediately begin the process of building up equity. Of course, you won’t have a substantial amount equity in the home right after you buy it unless you paid a rather large down payment. But, once your home becomes more valuable than the amount you still owe on it, you will begin to be able to reap the rewards of home equity.
Once you have built up equity in your home, you can borrow against its value. With the help of a home equity loan, you can pay off bills and other expenses while enjoying a much lower interest rate than you would with other types of personal loans. As such, owning a home can actually save you money when it comes to finance charges associated with loans. You can also use a home equity loan to pay medical bills, to pay for college, or even to start a new business.
In addition to taking advantage of lower interest rates, you can also claim the interest you pay when it comes time to compute your taxes. Credit card interest charges, which can be quite high, cannot be deducted from your taxes.
Make Budgeting Easier
One downside to renting an apartment is the fact that your rent amount can change over time. Each year, your apartment rent could potentially increase. When you buy a home, however, you will know ahead of time what your monthly payments will be for the next several years. Although your total payment may change a bit if you have escrowed your insurance and taxes, it will still remain pretty stable throughout the lifetime of the loan if you purchased your home with a fixed rate mortgage.
Enjoy a Profit when You Buy Real Estate
Perhaps one of the best parts about buying real estate is the fact that it almost always appreciates over time. As a result, you are almost guaranteed to make a profit when you buy a home. The same cannot be said when you rent an apartment. After all, you don’t even own that real estate! Rather, you are simply helping someone else buy the property instead.
If you don’t plan to stay in the area for a few years, it may not be worthwhile for you to buy a home. If you will be sticking around for awhile or if you have the opportunity to get some hot real estate while it is still relatively inexpensive, there are many benefits to home ownership that you should certainly take advantage of.”