Labeling yourself a “homeowner” really has a nice ring to it, right? Not only that but there are many other pros to this new role. Here are the major advantages of owning a home.
You Can Create Your Dream Home.
You have the freedom to make changes in your living space, without risking your deposit. From something easy like painting a bedroom or something complicated like a kitchen remodel, you can edit your home as you see fit.
Home improvements can give the home added value for when you decide to sell someday. Do you want good bang on your buck on your remodeling projects for your home? Here are some things to consider when you’re renovating to sell.
Pride of Ownership & Other Social Benefits
In the words of Former President George W. Bush for National Homeownership Month in 2002, “Home is an important financial investment, and it can be a source of great personal pride and an important part of community stability.”
Research done by the National Association of Realtors® shows the many social benefits provided by home ownership, like a boost in the educational performance of children, higher participation in a civic and volunteering activity, improved health care outcomes, and lowered crime rates. Homeowners are “happier” just from having achieved the so-called “American Dream”–a sense of accomplishment, a milestone.
You Have the Opportunity to Build Equity.
Equity is the difference between a home’s value and the mortgage amount owed on the home. It usually increases when you pay down your mortgage or when the market value of your home appreciates. You can access equity by redrawing on your loan If you’ve made additional payments, or by refinancing for cash out — which can be used for huge purchases like a car or reinvesting in a home renovation or deposit on another property.
More Control Over Costs
Rent can increase yearly and can be unpredictable. With a fixed-rate mortgage comes stable monthly payments and more peace of mind. This can then help you crunch the numbers better and invest for the years to come. Just make sure to have money set aside for surprise repairs and a slight increase in property taxes.
Tax Benefits for Homeowners
Part of being a homeowner is enjoying tax advantages and returns — who doesn’t love a good money back, right? Some tax deductions could be from home-related purchases, insurance payments, claims on the house, and whether you’re a first-time homebuyer!
One of the biggest tax advantages of owning a home is the option to write off paid monthly interest from your tax returns. During the first several years of the term of a mortgage, a borrowers monthly payment is almost all interest — therefore a good amount of deduction by end of year. Speak with a tax professional in your area to maximize this benefit.
Currently a renter? Talk to your real estate professional or better yet get in touch with one of the agents Broadpoint Properties so we can help you on how you can become a homeowner.