3 Advantages To Homeownership.
Homeownership is a goal most people strive to reach in their lives. Homeownership fosters a sense of community and stability, and comes with many financial advantages. Nevertheless, buying a home for the first time can be overwhelming for new buyers, says the team at Jacob Realty. The large numbers associated with down-payments and closing costs can be enough to scare novice home buyers back to renting. However, in the long run, the advantages of buying a home far outweigh the disadvantages.Financial Incentive
There are a number of different financial incentives that come with buying a home. To begin with, there are several tax deductions that come with it. Mortgage interest and property taxes are both deductible for federal and state income taxes. Additionally, homeownership allows you to build equity. Equity is the amount of the house you actually own—that is to say, the difference between the home’s market value and the balance of the loan owed on the home. So, if your home is worth $200,000 and you owe $100,000 in loans, then you have $100,000 in equity. Each month, as you pay down your mortgage, you build equity. Building equity allows you to own more and owe less, increases your overall net worth and allows you to build credit. Additionally, homeownership is seen as a stable investment. Homes typically appreciate in value over time, providing steady returns and even allowing you to turn a profit when you sell. Fixed-rate mortgage loans also allow you to make the same mortgage payments every month, which is more stable than paying rent, which can increase, and allows you to pay down your mortgage and build equity consistently. Over time, owning your own home can actually cost less than renting an apartment, and you’re able to see returns on the money you’re paying, unlike with renting.Community
Homeownership fosters a sense of community. It can be difficult to find a sense of community when you’re constantly switching apartment buildings. Even if you’re in one building for a long period of time, many people are short-term renters, allowing you to only make fleeting relationships. Often in large apartment buildings you rarely see your neighbors, and don’t build relationships at all. In contrast, owning a home allows you to creating meaningful and long-lasting relationships. The other homeowners in your community have invested their time and money into the neighborhood, and probably plan on staying there long-term. Subsequently, they are more likely to be involved in the community and looking to make permanent relationships. Additionally, because homeowners have so much invested in their houses, they are more likely to treat the houses with respect than renters who have no stake in the place they’re living in. This means that you’re more likely to live in a community where the houses are kept up and well-manicured than you would be if you simply rented a house.It’s Yours
Of course, one of the most obvious advantages that come with buying a home is that you own it. It’s yours—you can do anything you like with it. Apartment buildings typically have strict rules regarding what a renter can do to customize the space, and renting a house affords you practically no leeway in regards to changing things up. As a homeowner, you can do whatever you like to the home—rip up carpets, lay down hardwood, or gut the whole kitchen. This allows you to really make a place feel like home, not just somewhere you live.