Buying a home can be a challenging process as you fine tune your credit, apply for a mortgage, make a down payment, and move all your valuable belongings in after closing the deal. Despite that, millions of people go through the process. Why?
They know that the home buying process is worth it, because the benefits of buying a home are so numerous. Here are a few of them:
The Security Advantage Real Estate Owners Enjoy
Security is one of the most compelling reasons many people cite for buying their home. They want to have the peace of mind that comes with knowing their area, their neighbors, and what to expect in the neighborhood. They don’t have to deal with a landlords, tenants, or upstairs neighbors. Homeowners also feel financially secure because they’ve built up equity in their home. People like the security of knowing they can easily draw on that equity if needed for their retirement, medical expenses, or children’s education.
Freedom and Stability Advantages
Few things are better than sending family to your own backyard to play, rather than relocating to the park. Most parents enjoy knowing that their kids will grow up in their neighborhood, with the same schoolmates and friends for many years. Single people and older adults appreciate the freedom of home ownership, too. They can build custom shelves, put up a satellite dish for their TV, and paint the walls any color they like – without worrying what the property owner might think. You’re truly in charge when you own your home.
Housing prices tend to fluctuate from time to time, but historically real estate has proven to be one of the best investments. Paying rent is comparably like pouring money down a drain. One day you’ll be able to sell your home, but you can never sell the landlord you’ve enriched.
Owning a home offers you many tax advantages. In fact, this is one of the top reasons people make a decision to own a home. Much of the property taxes and interest that you pay can be deducted on your annual income taxes. Because you can itemize your taxes, you can also deduct charitable donations, state income taxes, moving expenses, theft losses, and miscellaneous items. As a renter, you may not have enough deductions to profitably itemize. But as a homeowner, you almost always do.
Home ownership does involve some maintenance and it is a big responsibility. If you don’t have a reliable income or you plan to move across the country every year, then home ownership might not be the right choice for you. However, home ownership makes sense when you consider freedom, security, investments, tax advantages, and many other benefits.