The decision to purchase a home is exciting and a major
investment for your future. Because there is only so much of it to go around,
real estate is the top choice for many investors and the desire for most families.
This article is designed to highlight some of the many benefits of home
ownership and how buying a home can often turn the American Dream into a
reality.
One of the most profitable markets in real estate is
rentals, which means that many families are paying to live in a home that isn't
their own. In some cases, renting a home is necessary. For all others, the
money that would be spent on rent could instead be used to pay a mortgage. In
fact, monthly rent payments often exceed that of a typical mortgage payment.
One of the greatest benefits of home ownership is putting money into something
that you can call your own and knowing that the monthly payments are going
toward your home's equity.
Speaking of equity, many properties experience a growth
in value as more development moves into the area or the economy strengthens
through an increase in job opportunities. If this happens, home values soar and
owners can bask in the glory of their newfound profit. When you purchase a new
car, it depreciates the moment that you drive off of the lot. When you buy a
home, however, it has the potential to appreciate year after year. There are
few things in life that can offer you a return above and beyond your original
purchase price, but a home can.
When you own a home, you will enjoy the freedom of
decorating and making any changes that you choose without needing the
permission of a landlord or property owner. In addition, you may even be able
to use your home's equity to finance some needed improvements and/or repairs.
In some cases, these changes may even increase the value of your home. An
upgraded kitchen or bathroom, hardwood flooring or an additional room are
examples of changes that could result in added value.
Another advantage of home ownership is the tax benefits
that are available. The interest paid on a home mortgage as well as most
property taxes paid are tax deductible. For additional information on deducting
mortgage interest and property tax, consult the IRS or a tax professional.
In addition to providing
yourself and your family with a feeling of stability and permanence, home
ownership can also help strengthen your credit profile through timely mortgage
payments and a steady financial history.
