Advantages of Home Ownership
I have worked with countless First Time Buyers over the years. I am often asked about the advantages of owning a home versus renting. Paying a mortgage and other expenses associated with buying, does not always appear to be a good deal to someone who has never owned a home. Renting usually gives the impression that it is a low stress and carefree lifestyle. There are a lot of misconceptions about home ownership. There are actually many advantages.
When you pay rent, the only thing you get in return is a place to live. Every dollar that you pay is an investment for your landlord. When you move out, you may get your security deposit returned to you, as a thank you for not damaging the property.
As a homeowner, a portion of every payment is used to reduce the principal of the loan. The principal is the amount that you actually borrowed. Paying down the principal is how you increase the equity in your home. And don't forget about appreciation. This is the increase in value over time. Should you decide to sell your home, you may realize a significant return on your investment. That is exactly what your landlord is counting on.
Another option would be to keep the home until the loan is paid-in-full. Living in a home that is paid for gives the owner a great sense of pride. As a landlord, it increases your profits. It helps to contribute to your financial freedom.
Additionally, there are tax benefits available to qualified home owners. There are tax deductions for property taxes and mortagage interest that you may qualify to deduct. As a landlord, there are even more opportunities to reduce your tax liability. (For specific information on the financial and tax benefits of buying and investing compared to renting, contact your local financial or tax consultant).
Personally, I feel the most important advantage to home ownership is that the home belongs to you. You can decorate it however you wish, entertain house guests, plant flowers and trees, rent it to others, it is all up to you. Home ownership is still the American Dream.
Would you like to learn more about the advantages of home ownership?
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Tracey R Wrisper, Residential Real Estate Expert, 337-718-8055.