Are you thinking about buying your first home? There is a lot to consider when contemplating such a large purchase. A home might be the most expensive thing you ever buy, so it’s not a decision that should be taken lightly. If you are interested in buying a home, but you are still weighing the pros and cons of home ownership, take a look at the below list of advantages of owning a home:
Advantages to Owning a Home:
Your monthly mortgage payment might be less than you’d pay in rent. Many prospective home owners are under the impression that their monthly mortgage payment will be double or triple what they’d pay to rent a place. This is not necessarily the case. In fact, mortgage payments are often significantly lower than rent payments.
You will actually own something when your mortgage is paid in full. When you make mortgage payments, you are gradually paying down your mortgage. If you choose to stay in your home for the duration of your mortgage term, you will own the house outright in the end. If you rent, you will certainly have a place to live, but your payments will not be used to pay off a loan.
You can personalize a home that you own. When you rent, you may not have the ability or desire to personalize your home. Your landlord might have restrictions, and you may also not want to spend your time and money on personalizing something that you do not own. When your own a piece of property, you have free reign to customize it with paint colors, decorations, and modifications.
You will have tax benefits. When you have a mortgage, you may be able to deduct the interest you pay on the loan on your tax return. Also, as a homeowner, you will likely have to pay property tax. This is something that may also be tax deductible. (Note: it’s important to consult with a tax professional to determine exactly what you can and cannot deduct on your tax return.)
The value of your home will probably appreciate over time. While there are never guarantees with real estate, there is a good chance that the value of your home will appreciate over the course of time. Therefore, you can look at home ownership as an investment.
You may have the opportunity to refinance your mortgage in the future. If you purchase a home with a mortgage, you may have the ability to refinance the loan in the future. You may choose to refinance if interest rates fall or if you want to tap into your home’s equity.