There are several reasons why you give homeownership. You might have done your research and come to the conclusion it is a good decision but you could still be having doubts which are understandable. It is normal to have reservations since it is going to be the biggest investment that you will make. It might not be a bad idea to check out Reward Homes if you’re looking at an alternative to home ownership. Here are some solid reasons why you might want to consider homeownership.
Pride of Owning a Home
This is perhaps one of the main reasons why many people look forward to owning a home. You don’t need to consult with your landlord if you’re thinking of changing the color of the paint. You can turn your volume up, add permanent fixtures without having to fear the repercussions. Home ownership comes with some level of stability and security for you and family.
Other than the pride of ownership, it is also important to appreciate the other practical benefits that come with owning a home. Real estate has been appreciating consistently over the last couple of years and it is unlikely to change even in the future. Most people view homeownership as a hedge against inflation.
Your Pay Less Tax
It is possible to deduct the interest that is being paid on your from taxable income. If you’re a new homeowner, you are likely to save a lot in tax benefits. A new mortgage will attract a high interest hence a greater tax benefit. You get to benefit from the tax deductions because of investing in real estate. There is a chance that owning a home could substantially be cheaper than renting in the long run.
There is an ROI
Renting has no ROI and you could end up paying for a place to live for the rest of your life. If you’ve been renting for a while, there is a high chance you’ve paid for some maintenance depending on the leasing agreement. You will always be at the landlord’s mercy as there are some things you can’t think of doing if you’re renting. When you’re paying the mortgage, the house will eventually be yours which is not the case with renting.
Investment and equity have a correlation when it comes to ownership. With every monthly payment, a portion of the payments goes towards the interest while the rest is used to offset the principal balance. Equity could be described as the interest that you’ve already paid. When you’re paying the interest, it is the same thing as depositing money in the bank. The money will become available should you decide to reinvest in your current home or a new one.
Control Over Living Space
You don’t have a lot of options when it comes to modification when you’re renting. You could be a tenant with evolving needs and the space you’re renting might be restrictive with what you can do. You might also not have the money to do some changes. When you own a home, you have the power of equity which can provide the financing you need in case of a home improvement project.
Homeownership can help you in creating a sustainable future in different ways. One of the reasons why a long-term renter could lack the sustainability aspect is because a big portion of their income goes towards house expenses. Once you’ve been locked into paying a mortgage, the living expenses will eventually level out in the long run. One the mortgage has been paid off completely, the living expenses will significantly reduce and a part of your income could go to your retirement fund.
One of the reasons why you could be moving from one neighborhood to another is because there is the luxury of not committing to one place. Renting can be unstable because you’re not sure where you’ll be living in the next two years. Your landlord could decide to increase the rent. This will mean that you will have to move to look for a cheaper alternative. If you own the home, you become emotionally and financially attached to it.
To sum it up, your home is an investment and there is a bevy of benefits as we’ve only mentioned a few. There are several solutions in the market and there is no reason why you should consider the option of owning a home.
Lastly, but not least, having your own home means you have true freedom. Homeownership indicates that you get to have things your way. You don’t need to take any permission of doing work like If you need a bright red accent wall in the living room, or if you want to improve your master bath to include your fantasy Jacuzzi tub…you can do it!
Homeownership is a pleasant experience for these ideas and more, tangible and intangible. What you get are benefits you see in multiple ways…in your wallet, your peace of mind, and even the decor—it is your taste, after all!