Mij Gibson Dec 14, 2020
Owning your own home is a great investment and achievement that many only dream about having. The benefits it brings overcomes many challenges. It can create real value and wealth over time.
But a key first step to buying a home is to determine if owning a home is the right fit for you. If you’re currently renting and considering the purchase of a home, then you have got to consider both the PROs and CONs. Understanding the benefits of home-ownership will help you decide.
In this article you learn about 7 benefits of owning your own home.
Build equity
This is the value of the property that you own. It increases as the market value of your home increases minus any liens against the property, such as a mortgage. It also increases when you make extra payments on your mortgage.
One of the great advantages of homeownership is the opportunity to build equity.
The longer you own a home, the more you’ll pay towards the principle balance of any mortgage. As the balance of your mortgage gets lower and hopefully the value of the property increases, the larger the equity.
Owning your own home allows you to access the increased value of your home that you may use for a variety of things. This could include renovating your home, paying for your children’s education, buying a new car or taking a family vacation!
Stability
Owning your own home improves stability. You won’t have to worry about moving home to a new place because there is no landlord to worry about, who may suddenly require you to move out because they have decided not to rent their property out any longer.
Homeownership is also a long-term commitment and rather large investment, so moving every few years is unlikely.
Create your dream home
You can create whatever you want as your dream home without having to worry about seeking permission from the landlord.
And when you decided to sell your home, you get to keep the profits from the increased value of your home.
Stable monthly payments
Renting means you have little choice when the landlord decides to increase your rent when you renew the lease agreement. This could be a large jump!
But as a homeowner your mortgage repayments and rates remain stable. They won’t jump up unexpectedly. You may also be able to get a fixed-rate home loan.
Tax advantages
A great benefit of owning your home are the tax advantages it provides. Check with your local tax office or accountant for latest tax advantages.
Mortgage payments is a saving
Your regular mortgage repayments are a way of saving money. It includes the principal and interest, which means that you’re putting money towards owning more of your home.
Build your credit
A great way for improving your credit score is to improve the average length of credit accounts and owning a home can accomplish this.
The length of your mortgage is typically 15 or 30 years so having a mortgage on your credit history is a great way to lengthen the average of your credit accounts.
Making regular monthly mortgage payments also shows that you’re a responsible borrower which not only can improve a credit score but also improves the chance of approval for future credit accounts.
Remember to consult a financial adviser to help you work out the best way to meet your financial goals. And if you decide to buy a home then ensure you seek expert advice.