Benefits of Owning a Home

Benefits of owning a home

Home Renters; learn the benefits of owning a home. Most importantly, how owning a home benefits you and your family. Did you know that your rent payments could easily build equity in your own home? That’s big savings!

Buying a home can be an excellent financial decision and a solid investment. However, there are many factors to consider before diving into it.

The first step in buying a home is to evaluate your situation to determine if home ownership is right for you and your family. Buying and owning a home has many advantages and disadvantages.

This article is only about the advantages or benefits of owning a home. The disadvantages will be discussed in a separate article coming soon.  So, if you are currently renting and plan to buy a home, consider the following  benefits of owning a home:

Gain and Appreciation

Buying or owning a home is an investment. With time, the home appreciates in value, and that translates to gain or profit on your investment.

Income Tax Advantage

US Tax Code allows home owners to deduct the mortgage interest and property tax they paid. This helps to reduce tax liability.

Building Home Equity

Home equity is the value of the home minus the amount owed. The value of your home often increases over time. As a result, the equity of the home increases. In other words, equity is like the money you have saved and stored away.

Fixed Monthly Payments

Benefits of owning a home includes fixed mortgage payments. This helps homeowners in budgeting, savings, and planning for the future.

Money Savings

The equity in your home is a saved-up money. When you sell the home, the equity is taken as gain or profit. You may not pay Federal income tax on this gain if you meet certain requirements. Homeowners can also pull out the equity as a home equity loan to pay for other expenses.

Freedom to Make Changes

This is your home. You don’t seek any permission from a landlord to make any changes or decorations you want.

Health and Happiness

Study has shown that homeowners generally have fewer health problems and report greater happiness than renters. Even when the homeowner and renter have the same income and education levels.

Children’s well being

Homeownership may help parents engage in positive parenting behavior. This includes more opportunities for school involvement or participation in neighborhood activities.

Stability

Living in an area for a long time is rewarding. It allows homeowners to plan for the future. Also, study has shown that residential stability has a positive effect on reading and math performance of children ages 3 to 12.

Community Involvement

Home owners get more engaged in organizations that serve their community, regardless of whether they live in high or low-value homes. Homeowners also form more relationships with neighbors they can count on for support and friendship.

Crime Prevention

Neighborhoods with more homeowners may have crime prevention programs than neighborhoods with more renters. 

Building Credit

One of the factors that impact credit score is length of credit history. Since mortgages take a long time, it helps strengthen average credit history, assuming mortgage payments are regular and on time.

Rent Amount over Time

Rent payment analysis by Fair Texas Title shows the rent a typical renter pays over a period of 30 years. Download a copy of the rent payment analysis. 

Summary

In summary, as shown above, homeowners have many benefits of owning a home. Therefore, it is important that home renters consider the above benefits in making decisions.

Home Buyers

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Festus Okolie

Festus Okolie

I am a Texas licensed Real Estate Agent and Realtor you can trust. I provide hassle-free real estate services in Dallas-Fort Worth Metropolitan area in Texas. I help home buyers and sellers achieve their real estate goals. I take particular interest in negotiating deals to benefit my clients.

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