The decision to purchase a home is a big one. Buying a property is a significant investment, and the process can feel overwhelming. However, there are many benefits of homeownership that renters don’t get. Here are some great reasons to buy a house.
Increased Financial Stability is One of the Benefits of Homeownership
One of the primary benefits of homeownership is better financial stability. When you rent a home or apartment, rent changes frequently and tightens your budget. You can’t be sure what the following year’s rent will be until the lease is up for renewal. When you have a fixed mortgage, the payment every month will be the same year after year, as long as you do not refinance. Knowing the set amount allows you greater control over your budget and peace of mind when planning for retirement.
Strengthen Your Finances
It is not easy to build strong credit and a healthy financial portfolio, and one of the benefits of homeownership is an improved credit score. Every on-time monthly mortgage payment contributes to your credit score and the equity you have in your home. To strengthen your home equity:
- Make a larger down payment when purchasing a home.
- Invest in home improvement projects that increase property value.
- Refinance to a 15-year loan if you can afford the payments.
- Pay toward the principal if there are no prepayment penalties.
By increasing home equity and your credit score, it will be easier to qualify for other types of financing in the future or draw against the equity in your home for things like retirement or college.
Tax Breaks are Benefits of Homeownership
Homeowners are eligible for tax benefits, especially first-time homebuyers. These benefits add up to hundreds or thousands of dollars in savings. Working with an accountant is a good idea if you are unsure what credits you are eligible for.
Permanence and Privacy
Many renters move from place to place every few years. Packing your belongings and unpacking them somewhere else is stressful. You never need to worry about moving when you purchase a home. You might decide to relocate for a job or be closer to family, but you won’t be forced out because of increased rent or when the property owner sells your rental.
Another one of the benefits of homeownership is improved privacy. You won’t hear the neighbor’s television or worry about maintenance showing up in the middle of the day.
The Ability to Customize Your House
Renters have to follow the terms outlined in the lease, which often means not painting or nailing holes in the wall. When you own a home, it is yours to customize as you see fit. The possibilities are endless, from structural modifications to painting the bathroom and adding an accent wall in the dining room.