It’s possible that when you think about the benefits of home ownership the first one that comes to your mind is having a roof over your head. However, there are some other important benefits to consider that aren’t all exclusively about money. So, what are the benefits of owning a home? Continue reading to see the list of the advantages of buying a house that makes homeownership better than renting a property and that not all renters know about.
Benefits of Owning a Home
You Can Suit Your Tastes
One of the best advantages of buying a home is being able to do whatever with and in it. For instance, you can woodwork in your shop, paint the walls in any color you want or have as many pets as you wish. You’re allowed to do whatever you want as your home because there’s no landlord managing the rental property to tell you that you can’t. However, it’s also good to keep in mind that you’ll probably need to do some changes and adopt more mainstream preferences if you need to sell your home fast in the future.
It’s a Good Investment
Another of the benefits of buying a home is that it can be considered a good investment. Due to inflation, the median home price in 1940 was $30,600 while in the year 2000 it was $119,600. Even when some might argue that investing in stocks has a higher payoff and if that those who invested $30,6000 in the stock market in 1940 (which is not easy, obviously) might be a millionaire today, we should consider all the money they must have paid in rent over those six decades.
Improve Your Credit Score
What are the benefits of owning a home when it comes to your credit score? Well, if you have neither many installment accounts nor a long credit history, buying a house can improve your credit score. There are three ways in which your mortgage drives up your credit score: first, your mortgage gives you an extra account on your credit report (because only a few landlords report rental payments), secondly, the consistent payments prove that you’re a responsible borrower, and finally, truth is that credit bureaus commonly value mortgage payment history more than revolving accounts.
Tax breaks are usually one of the best perks of being a homeowner. Generally, some closing costs and mortgage interest are tax-deductible, and you experience most of these benefits during those early years when you’re paying the bulk of your mortgage interest. Moreover, property taxes and mortgage insurance might be deductible in many states. In addition, when you sell your property, you could even obtain $250,000 in profit, tax-free.
It Gets Easier Over Time
What are the benefits of owning a home over time? Even though preparing for homeownership includes a financial strain due to the down payment and unexpected homeownership costs, things will be easier eventually. As you set your career, your mortgage payments will become more affordable and they won’t increase with a fixed mortgage. On the other hand, the higher the salaries of the tenants get, the higher their rent is. Furthermore, paying your mortgage allows you to build equity each month, which becomes a useful resource you can sell in the future.