Most of us dream of owning a house. For many, it serves as a reward for years of hard work and saving up. For others, it signifies success and financial stability. Unfortunately, this ideology is what causes some individuals to hesitate on buying their own home.
Because of how daunting the purchase process is as well as the financial responsibility that it comes with, many people hesitate to do so. However, there are perks to having your own home. From increasing your equity to saving money in the long run, homeownership is something that you will find to be rewarding in so many ways.
Freedom to Build and Design
One of the perks that come with owning your house or property is the freedom to design it in whatever way you want. Do you want to paint the walls red? No problem. Do you want to add custom cabinets purchased from Salt Lake City? Go ahead. The sky is the limit when it comes to recreating the space you own. Because unlike lessees, homeowners are not restricted from making changes or modifications in their property.
Unlike cars and other objects, a property’s value does not depreciate. On the contrary, its value actually increases in time, even in times of recession. Your home’s value is expected to double after a year. You can even sell your property for a higher price in the market after five years or more. With the increasing demand for homeownership and commercial expansion, your property will surely come with a price tag higher than the amount you initially bought it with.
A lot of people are not aware of the importance of equity. It is understandable, however, since it is a little complicated to understand as well. Equity is strongly related to the investment benefits that you have from your property. Usually, properties are purchased through a mortgage. Assuming that you did so and paid 20% of it, you have a 20% home equity value.
Now, it gets complicated when the value of your property increases. A lot of people miss it, but despite the increase of value, your loan or mortgage will not change. Hence, your equity value has increased without doing anything at all. Nevertheless, paying your mortgage monthly will build that equity as it increases over time. By the time you own 100% of the property, its value is most likely a lot higher than the time you bought it.
Another advantageous perk that you will get to enjoy as a homeowner is deductions on paid monthly interest from tax returns. During the first few years of paying a mortgage, a person is most likely covering the interest of the loan. So, you can expect a deduction at the end of the year. Furthermore, one can also deduct mortgage insurance payments and other home-related purchases.
Buying and owning a home has a lot of advantages. The ones listed above are only a fraction of what you get to enjoy as a homeowner. Although it might seem scary at the start, owning a home can definitely save you a lot of money—well, more than what a lessee can save, at the very least.