10 Reasons to Buy Home
Renting can be a drag, but buying a home is a big life change that can be scary to make.
Itās natural to have some reservations, but many people find that the perks of owning a home are well worth facing your fears for. If youāre starting to grow tired of paying your landlordās rent, consider the following 10 benefits of homeownership.
1. You can make the property your own
Owning a home means that you have free rein to decorate and modify it to meet your own personal tastes, no landlord approval required. If you want to paint the master bedroom bright yellow, tear out the carpeting in the living room, or even knock out a wall, thereās nothing holding you back!
2. Youāll have more privacy
When you own a house, you get to control who enters your property and when. That means no more sharing communal areas with neighbors, and no more surprise visits from nosy landlords. Plus, if you need to have a repair done, you get to choose which contractor to hire and when they come over, so you wonāt have to worry about a stranger being in your house while youāre out for the day.
3. You can build credit
Making all of your rent payments on time may seem like the type of behavior that boosts your credit score, but this is not necessarily the case. Many landlords do not report rent to credit bureaus, meaning that your financial responsibility ultimately goes unrewarded. Mortgage lenders, on the other hand, do report your payments, so staying up to date can help you build credit.
4. Your money will actually go somewhere
When you pay rent, that money goes straight to your landlordās pockets, and youāll never see it again. With a mortgage, on the other hand, every monthly payment you make helps you build equity in your home.
Homes consistently appreciate in value, and as your homeās value increases, your equity increases, providing you with funds for the future. In a sense, homeownership is similar to having a savings accountāone that youāre forced to put money into even if youāre not normally good at saving.
5. Your monthly payments wonāt increase
One of the biggest downsides of renting is that even if a property is affordable when you first move in, your rent payments can increase over time. When you own a home, this isnāt usually an issue.
Most mortgages are fixed-rate, meaning that while your property taxes and insurance costs may increase to adjust for inflation, your mortgage payments will stay the same for the entire time you own the home. This consistency makes it much easier for you to plan ahead and stick to a budget.
6. Youāll enjoy numerous tax benefits
There are several tax benefits associated with owning a home. Mortgage interest deductions allow you to deduct interest on up to $375,000 of your home loan if filing as an individual or up to $750,000 if filing as a married couple. You can also deduct up to $5,000 of your property taxes if filing as an individual and up to $10,000 if filing jointly.
Plus, if you decide to sell the home later on, you likely wonāt need to pay a cent of the profit you make in taxesācapital gains tax exemptions mean you donāt have to pay taxes on home sales unless you make over $250,000 if filing as an individual or over $500,000 if filing jointly.
7. You can spend quality time in your yard
Owning a home doesnāt just mean owning a buildingāyou also get a patch of land to enjoy to your heartās content. From gardening, to barbecuing, to playing tag with your kids, thereās no shortage of outdoor activities to enjoy in a yard, and owning that yard means that as long as you arenāt breaking any laws or HOA rules, youāre free to soak up the sun however you like!
8. You can be part of a community
Neighborhoods where most or all of the properties are owned are closely linked to a higher quality of life. Compared to neighborhoods with mostly rented properties, these areas tend to have higher levels of community engagement and lower crime rates. Plus, people usually stay on owned properties longer than rented ones, meaning that if youāre lucky, the friendships you form with your neighbors may turn out to be lifelong.
9. Youāll have something to pass down to future generations
You canāt list a rental unit in your will, but you can pass a house down to your loved ones. That means that someday in the far future, your children can either settle down on your property or sell it to pay for various life expenses. In this sense, buying a home is not only an investment for you, but also for your children and grandchildren.
10. You can take pride in what youāve accomplished
As a final reason to consider becoming a homeowner, just think about how satisfying it will feel to wake up every morning in your very own home. Buying a house requires no shortage of time and effort, but that just makes it all the more rewarding to know youāve made your dream a reality. Owning a home will be proof that your hard work has paid off, and no matter what else happens in your life, you can always feel proud that you were able to achieve this goal.
If you feel like youāre ready to buy your first home and enjoy the benefits described above, BuyHouseEZ is here to help you take the next step forward. Even if you donāt qualify for a traditional mortgage, we provide alternative financing solutions to get you on the path towards homeownership. Contact us to learn more!
