Many people are always torn between renting or buying a house. In today's world when every cent matters, buying a house is presented by experts as a better option than renting. Here are some reasons why.
- A purchased home builds equity over time
When you buy a house, it will build equity over time. Fraction of the monthly mortgage goes against the loan interest. In most arrangements, when the equity reaches 20%, it can be tapped for a home equity loan. It then allows the home owner to avail of lower interest rates or in some cases, longer repayment terms.
- A purchased home qualifies the owner for some tax exemptions
There are tax benefits which the government accords exclusively to home owners. One of the best example is the homestead exemption. It varies from one state to another. But in general, the homestead tax exemption excludes a certain amount of the total purchase value of the house from accruing property taxes. Federal tax exemptions are also available.
- A purchased home can become an income-generating property
If the time comes that you decide to purchase another property, you have the option to either sell your current house for more funds. If this is not an option and you still want to keep ownership – you can have it rented. The property will become an extra income stream for you.
- A purchased home accords owners freedom and creativity
One of the reasons why many persons want to have their own spaces is to experience freedom. This freedom is not confined to privacy. Sometimes it also concerns about being able to express oneself in terms of designing and creativity.
In many cases, rented homes are furnished and designed by the property owners. The renters have to stick with what they can see with the property's aesthetics.
In a purchased home, the owner can exercise freedom in whatever paint color he or she wants for his walls. The furniture and other fixtures also depends on the owner on how small or how big they can be along with the materials which should be used as home decor accessories.
- A purchased home gives the owner a base to establish roots
Home buyers typically stay longer in a certain community or neighborhood for a long time. They become attached to that locality. Unlike renters who typically moves from time to time, home owners can establish their family's roots in a certain place.
This is true for home owners who have child births in their purchased homes. Their children can call the place as their origin.
If you are still having a hard time choosing a property to buy, always remember that your local realtor is just a call away.