When it comes to buying a house, many people experience a mixed bag of emotions regarding whether or not to take the plunge. And rightfully so. Buying a home—especially a first home—is a big decision, not to mention a major step into what has commonly been perceived as the “grownup world.”
Regardless of your age, your career plans, your life goals or even your financial wherewithal, however, it’s important to have a basic understanding of the many benefits that come with home ownership. After all, knowing a thing or two about how buying a home can serve you financially and emotionally couldn’t hurt when you decide you’re ready.
Here are 8 financial and emotional benefits to consider when buying a home:
Benefit of Buying a Home 1: Home ownership can build equity. Buying a house has traditionally been one of the better investments you can make, allowing homeowners to capitalize on the equity of their home as it increases over time. While home appreciation is not always guaranteed, statistics show that in the past 20 years, home prices in the U.S. have risen three to six percent a year on average. That means, when you decide to buy a home, you have the benefit of knowing you’ve put your capital in an investment that has traditionally proven to continue growing.
Benefit of Buying a Home 2: You can cash-in on appreciation. As you pay down the principle on your mortgage, or as your home value increases over time, you’ll find the equity to be a nice chunk of change if and when you decide to sell. However, selling your home isn’t the only way to leverage that built-up equity. Many homeowners who choose to stay in their homes long term choose to cash-in on their home’s value by utilizing home equity loans or lines of credit (also known as a HELOC) to pay for various home improvement or lifestyle expenses, or to help consolidate other higher-interest debt loans. In any case, the value your home gains over time is yours and available, should you need it.
Benefit of Buying a Home 3: Depending on the loan, your mortgage payment won’t increase. One of the biggest advantages of home ownership over renting is the simple fact that you won’t be at the mercy of a landlord who may continually raise your rent. With a fixed-rate mortgage, your monthly mortgage payment will stay consistent regardless of market fluctuations. Additionally, with interest rates as low as they are now, borrowing money is very inexpensive—especially in comparison to areas where rent is high. As such, it can be just as affordable to purchase as it is to rent, if not more so. Plus, you’ll be building equity.
Benefit of Buying a Home 4: Tax advantages are yours for the claiming. Many home ownership costs are tax deductible, such as property taxes. In fact, you can deduct the interest you pay on your mortgage from your taxable income. The value of this tax break depends on a few factors, such as your personal tax bracket, the size of your mortgage, the rate of interest on it and how long you’ve held the mortgage. But, as a rule of thumb, the newer the mortgage, the greater amount of interest you pay each month—therefore, the bigger the tax break.
Benefit of Buying a Home 5: Home ownership comes with greater stability and emotional security. Rather than helping a landlord pay his mortgage, you’ll be buying your very own piece of real estate. For many, this is the American dream! No more worrying about negligent landlords, rent increases or the fear of being evicted because your place is being sold or redeveloped. Your home will be yours for as long as you like—and you’ll be in charge.
Benefit of Buying a Home 6: Your own home means your own style. When you rent, you have very little say in what you can or can’t do to the space to make it yours. That power changes when the home is yours. With home ownership you have more freedom to redecorate or renovate to fit your unique style and desires. No more having to get permission to change paint colors. And decisions to install hardwood floors or rip out walls to extend your master bedroom are yours to make. Best of all, if you decide to sell, you’ll recoup at least part of the cost of the improvements rather than lose them completely.
Benefit of Buying a Home 7: You’ll be able to put down roots in a community. As a homeowner, you’ll have the ability to get to know your neighbors, participate in various street or backyard socials or join different activity groups. Additionally, local homeowners generally have a greater voice and influence in community affairs. This can be a big deal when it comes to development proposals, school issues or changes to traffic control. And, of course, there’s the peace of mind that comes from the stability of consistent local schools and friend groups.
Benefit of Buying a Home 8: Master-planned communities offer more than just homes. Today, many communities are offering much more than merely a home within a neighborhood. These master-planned communities offer access to a complete lifestyle experience that includes built-in amenities designed to appeal to residents on multiple levels. From swimming pools and tennis clubs to parks, golf courses, and more, residents of these communities are finding the home they always wanted while living the active and involved lifestyles they always dreamed of.
When it comes down to it, buying a home is a big step. However, if you’re financially and emotionally ready, it’s a good step to take. Home ownership not only provides security and a sense of accomplishment, but it can also set you up for future financial success. The key is to find the home that’s right for you.
For more information on everything Magnolia Green has to offer, call 804-302-6626 or feel free to visit us at our Welcome Center anytime. 17301 Memorial Tournament Dr., Moseley, VA 23120.