Owning a home means building wealth over time. Purchasing a home within your budget is a fantastic investment. Monthly equity is accrued, every month you pay your mortgage your equity increases as your mortgage decreases. This built up Equity can be borrowed against in the future for things like your children’s college tuition or in case of an emergency. This is a plus if you decide to sell your home. You can increase the value of your home as well when you make improvements, inside or out.
These can change from year to year but there are often tax benefits to owning a home. You can typically deduct things like mortgage interest, closing costs the first year and property taxes. Interest paid on home equity loans is deductible as well so shifting your credit card debts to your home loan can mean big savings. Plus the percentage rate on the debt is much lower on a home loan versus a credit card, again adding up to savings on your part.
Cheaper Than Renting
You may think it is cheaper to rent, but long-term buying is a much better deal. Mortgage payments can be cheaper in some areas than rent. Plus, as you pay off your mortgage your equity increases. And your monthly payment is going to something that benefits you. Renting is like throwing money out the window. Why not buy something you can enjoy and own instead of funding someone else’s dream?
Creating Good Credit
When you take out a home loan you are establishing good credit. Even if you are already looking good on a credit report buying a home makes you look even better. Faithfully paying off a mortgage each month looks very good on a credit report and makes buying another home in the future even easier. If your credit is in the medium range taking out a mortgage will increase your credit score.
It’s Your Home!
One of the best benefits of all is being able to do what you want with your own home. You can paint the walls whatever color you want, install your favorite lighting system or decorate in whatever style suits your personality. You can landscape to your delight with the flowers and plants you love or plant a vegetable garden. Love pets? You can have the dogs or cats you love without having to pay a monthly pet fee or worry about them damaging the landlord’s carpets. Owning your home means owning the home of your dreams not abiding by what someone else says you can or cannot do.