Home ownership affords unique advantages that you just don’t get from renting. Yes, there is more responsibility when you’re the owner, but the rewards are well worth it. If you’re not convinced, take a look at this list detailing the top five benefits of becoming a homeowner:
1. Build Equity
Equity is the difference between what your house is worth and how much you owe on the property. You gain equity in a home by one of two ways:
- Paying down your mortgage loan each month
- Experiencing higher home valuation as a result of rising markets.
These equity gains accrue to your personal net worth as a part of long-term home ownership, which is a huge advantage to buying and maintaining a home. It’s sort of like a mandatory savings plan with your best interests at heart.
2. Smart Investment
In the long run, home ownership tends to provide an excellent return on your investment. You need a place to live anyway, and property can prove to be a worthwhile asset. On the other hand, renting does not give you any benefit other than a place to live in the short run. The money you pay goes to build your landlord’s equity.
3. Less Expensive than Renting
Some may wish to debate this point. But, that’s because they are not looking at the perpetual cost of renting over the long run. With rent prices continuing to increase, the projected total amount of money paid out over a lifetime is staggering. Paying rent never stops. But a mortgage payment finishes when the loan is paid in full. You can also account for the opportunity cost of not accruing home equity as a renter.
4. Tax Advantages
Home ownership provides excellent tax advantages. You can deduct the interest paid on your mortgage loan from your annual tax bill. You can also deduct any mortgage insurance payments and certain other purchases related to your home. The sum total of these costs can provide a healthy tax deduction. In essence, it’s as if the government wants to encourage you to buy a home by offsetting some of the costs of ownership.
5. Customize Your Property
As Americans, we appreciate the freedom to pursue happiness in the ways we see fit. We’re an expressive bunch and our individuality shows in all manner of ways, including our homes. Home ownership allows you the freedom to customize the place to your heart’s content. From changing the paint color to remodeling the kitchen, the place is yours to do with as you wish.
Call on Us
Thinking about buying a place of your own? Call the home experts at DUFFY Realty. Our team of knowledgeable professionals is immersed in real estate every day. We are passionate and dialed into the local Atlanta market. Call us at (678) 318-1700 for a conversation about how we can serve you best.