There are lots of advantages as a homeowner. Although buying a home isn’t the correct choice for everyone or for every situation, there are many perks of homeownership that usually remain consistent over time. These include building equity, lower overall monthly cost, pride of ownership, and freedom to do what you want to your property.
Owning a home is the American dream for most people, offering prospective homeowners the pride and satisfaction of having a place to call their own. Then again that’s not the only factor to thinking about stop renting and becoming a homeowner. There’s no doubt that homeownership is a large investment, but ultimately, it’s an investment that pays for itself multiple times over. Just review these reasons to learn how.
1. Less Costly
Homeownership usually costs less every month. In some areas, rent is still affordable, but in many places, it’s equal to or higher than a mortgage payment, especially when you factor in that mortgage interest and property taxes are tax deductible. As long as you get a fixed-rate mortgage, currently around 3% or less.
2. Building Value
Homeownership offers more value for your money. While renting property is an expense, a home you own is actually an investment.
The reason why is because with homeownership it allows you to build equity over time, so although up-front fees may seem excessive, buying a home usually becomes a better value in the long run.
3. Cost Control
With renting, you have no control over whether the cost of rent going up once your lease term is up. Oftentimes it leaves the renter with moving to another place. With homeownership, you’re in control.
You can create a budget to for your mortgage payment just like a rent check but you will feel comfortable knowing that your home will remain yours after a few years, 10 years or 20 years. You can move when you want to move. It is not based on someone else’s decisions.
The majority of mortgages are fixed so you are going to make the same payment each month. This should last for the next 30 years of your life. Even if the value of your home were to increase in value, your payment is still the same. For example, if you purchased the house for $175,000 and 10 years later, the home may be worth $299,000.
4. More Privacy
If you are paying rent in a multifamily building such as an apartment complex or a condo, it is very likely that you share walls, ceilings or floors with neighbors. Neighbors can be very loud at times, or even you, but it has to be endured because you are so close. People who buy a detached home becomes a more preferred option if you want to play your music loud or you can make your living space a very peaceful place.
5. Personalization
If you want to remodel your bathroom or kitchen, change your flooring or add an extra room it is not a freedom you in control of. As the owner of your home, the decision is yours to make, and you can redesign your home in any way you choose on the interior ar an extent subject to an HOA, local building codes and ordinances.
Some landlords or owners of the building you are renting will give you permission to make modifications as long as you return the property to its original form once you terminate the lease. Sometimes they will allow you to improve/modify it but all at your expense and possible rent reduction if it adds value.