Becoming a homeowner may be a great undertaking, however, it comes with great benefits.
1. You’re paying for housing whether you rent or buy a home. In many cases, your monthly mortgage payment may be the same amount as your monthly rent. Why not own your home?
2. Owning a home is a sort of "Forced Savings". In a sense, paying your mortgage is a form of savings, as it increases the equity in your home. Your monthly payment goes towards paying off the debt on your home.
3. Tax benefits are huge. Owning a home may reduce the amount you pay in income taxes each year. For the most part, you get to deduct on your mortgage interest, the points paid on getting your loan, an equity loan interest, property taxes, home office deduction, the selling costs of selling your home, capital gains when selling and some of your moving costs. You certainly don't receive any of these benefits when renting.
4. Owning your home is a great investment. Studies have shown that home values move in cycles over the short-term; if you remain in your home for a long period, your home value will increase and give you a substantial return on your investment.
5. When needed, you may borrow against your home's equity to meet a variety of financial needs, including home improvements, education or medical expenses. A HELOC or line of credit can also be used to pay off high-interest credit card debt, with a lower rate and the interest payments may be tax-deductible.
6. Owning a home builds your credit rating. When making timely monthly loan payments, it demonstrates to the lenders that you are a good borrower and a low default risk to them. A strong credit history gets reported on your credit report and will be helpful in the future when you need to finance a car or obtain other types of loans.
7. Homeownership offers tremendous freedom to enjoy the living environment you desire. You can own pets, paint rooms whatever color you like, make changes to floors and carpeting and do all the things that make a house your home.
The benefits of homeownership are massive when compared to renting. When renting you are simply making your landlord rich. It's time to build your own wealth. Call us we can help.