We’ve discussed why this is a great time to buy a home, but why buy a home at all? There are both positives and negatives when it comes to home ownership, and it’s important to be aware of all of them prior to purchasing a home, considering how large of an investment it is. Here are some virtues of homeownership:
It is an investment. A home is one of the best investments you can possibly make. Home values appreciate about five percent per year, and while the possibility of a crash in the housing market obviously exists, a home is considered an extremely safe investment. Rather than throwing money away on rent, you can take comfort in knowing that a mortgage payment is essentially a kind of monthly forced savings.
You don’t have a landlord. Another great benefit of making mortgage payments instead of paying rent is that you no longer have to deal with a landlord. You will not have to worry about the lease not being renewed, and if you have a fixed rate mortgage, your monthly payment will never increase like rent has been known to do. Not having to worry about the wishes of a landlord also affords you the freedom to decorate, remodel, or otherwise make improvements. You can truly make the space yours, because it is yours.
It provides financial flexibility. In addition to the money you’ll save per month because owning is cheaper than renting, you’ll save on taxes: all of the interest and property taxes you pay in a given year can be deducted from your gross income. You can borrow against your equity because the value of your home increases in relation to the amount you owe. Making your mortgage payments on time every month will do wonders for your credit score and builds a very positive credit history.
Owning a home is not for everyone, but it certainly has its perks. If you are considering purchasing a home, there’s never been a better time than now to do so. Just make sure you find an experienced agent to help you through the process and get you into the home of your dreams.
Comments(0)