Benefits of Owning Your Home
Buying a home is a wonderful opportunity for financial growth, settling down, and creating your own space. If you are torn about renting or buying your first home - you're not alone!
According to the National Association of Realtors buyers 36 years and younger continue to be the largest generational group of home buyers with a median of 31 years old. While this is great that the millennial buyers are out there and the largest group purchasing homes, the median age is still 31, meaning that some people are waiting longer to buy their first home and are renting instead.
Renting can be a great option if you are unsure how long you will be in a city, or if you do not feel financially ready for a home purchase. It is important to consider the costs associated with buying a home. Down payment, closing costs, and fees are generally out of pocket. If you are unsure of how much you will need for these costs, you should speak with a lender to get an idea how much you can afford with the money you have. A Realtor can help you negotiate some of these costs when you make an offer on a home, as some of it can be paid by the seller either partially or in full.
If you are a first time home buyer, this may seem intimidating to put so much money towards one thing at one time. However, in the long run, owning your home can save you money instead of renting. Plus, owning your home can earn equity where renting does not.
Below, here are a few other benefits to owning a home:
Rent can go up year-to-year, fixed mortgages won't
Generally - rent rates will go up every year. This is usually due to inflation or demand for housing in a certain area. This may be an issue if you need to stay within a certain budget and your current rent suddenly becomes too expensive. Having a fixed mortgage can keep your monthly payments consistent, and your budget more stable.
Tax Deduction Opportunities
Another advantage to home ownership is having the ability to deduct mortgage insurance payments from your taxes. You may also be able to deduct certain improvements to the home - i.e. energy efficient updates, or some of the closing costs when you purchase the home. This can be a great relief when tax season comes around!
Save More Money
Being a home owner takes some responsibility. As a homeowner, you are required to save money to pay your mortgage and to have a "rainy day fund" for updates or fixes. Updates can also include new appliances that may help reduce your energy usage - both lowering your monthly bills and reducing your carbon footprint. You'll be forced to be better at managing your money, which is always a good thing! Not the mention, that money being put towards your mortgage is building your equity.Home is Where the Heart Is
Finally, owning your home puts down some roots. You have a space to settle in and create to your style and wants. You get to buy items that will last, design to your liking, and plan for the future. The best part is, you don't need to get approval from anyone but yourself! Your home is yours to do with what you please, so settle in, get comfortable and get ready to fall in love with your home!
Are you already a homeowner that can think of a million other reasons to own? Let us know! We'd love to share your favorite things about of being a homeowner!