When it comes to buying a home, there are numerous perks that come along with just the house itself; financial stability,strength, tax deductions, a permanent home, and a sense of belonging in your community. Homeownership may seem like a daunting task, but the payoff is highly rewarding!
1) Financial stability
In terms of both lifestyle and monetary stability, buying a home provides a new sense of reliability to first-time homeowners. In some cases, mortgage payments paid monthly may be less expensive than some rental rates. (Hello, savings!)
This is because inflation affects the price of rent. According to Apartment Guide’s annual rent report, the national rent average increases by 4% each year.
But when you’re a homeowner with a fixed-rate mortgage, you have a set monthly mortgage payment that will not change, regardless of inflation.
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2) Financial strength
If you are a first-time homebuyer, purchasing a home can strengthen your financial portfolio and help your money find its way back into your pocket.
Monthly mortgage payments steadily accumulate equity, while monthly rent payments to your landlord hold no return. So, what are some ways to rapidly increase your equity?
If there are no prepayment penalties, pay toward your principal.If it makes sense with rate conditions and your financial situation, consider refinancing to a 15-year loan.If you haven’t purchased a home yet, consider making a larger down payment.Tackle home improvement projects that increase your home value.
3) Tax benefits
As a homeowner, you may qualify for a tax deduction, which is money back in your tax return. And who wouldn’t want to have that?! These tax deductions can vary across home improvement expenses, insurance payments, claims on the house, and whether you’re a first-time homebuyer.
The existence of these tax deductions may shock you if you’ve never heard of them. It’s a lesser-known incentive for first-time homebuyers, but it could save you hundreds on your next tax return. If you have more questions about the tax benefits of being a homeowner, make sure to speak with a tax professional!
4) Permanent residence
Everyone knows that moving from house to house, or apartment to apartment is quite strenuous on the mind and body. It’s extremely inconvenient and expensive to haul all your belongings from one place to the next. But, once you buy a home, it may be the last move you ever do! Even if it’s not your forever home, you’ll be relieved of the stress of contemplating where to live once your lease is up.
5) Sense of community
Buying a home allows you to make long-lasting relationships with neighbours and other people in your community. Homeownership removes the possibility of a premature move which would otherwise prevent the formation of those close relationships with friends,and local businesses. Settling down can provide you with a newfound support, bringing more comfort into your life.