Owning a home is everyone’s dream, there are many noticeable benefits of owning a home. If you are planning to purchase a home the first step you should take is to determine whether having a house is the right fit for you and your family. It is essential when making your decisions to strongly consider both the advantages and disadvantages of what you are deciding on.
Here are some of the benefits of having a place to call your home. Knowing some of the benefits of owning a home can help you make informed decisions and save some of your money in the long run.
Freedom to Own
The most obvious plus benefit of having your own home is being in the position to customize it to fit your lifestyle. The dream home you always think about will become a reality with the newly found freedom to design, renovate, decorate and add anything that your heart desires.
If you have your own home, you can add permanent fixtures or paint your walls with any color you wish without worrying about breaking or leasing restrictions or regulations.
Opportunity to Build Equity
When you hear individuals talking about homeownership and real estate, one of the most obvious words you will likely hear is equity. Equity in real estate or homeownership is the probable market value of a property without or minus the liens against it such as a mortgage. One of the excellent benefits of having a home is an opportunity to create or build equity.
The longer you own your home, the more you will have to pay towards the balance of any liens. As the principal balance of any liens gets lower and lower and hopefully the value of the home increases, the larger the equity.
Enhances Your Savings
Purchasing a home is a reliable and stable way of investing your cash. To make it even simpler, property or homeownership is a forced way of saving your money. For most individuals, paying for your monthly mortgage is not a cost; it is a payment to yourself, which allows for higher credit, overall profit and equity down the road. You should view your mortgage payments as maintaining an excellent financial discipline where you are investing in something that is bound to improve and grow over time.
You Enjoy Significant Tax Deductions
Homeownership can minimize the amount of money you pay in income tax every year. Your property tax and mortgage interest payments can be deduced from the federal taxes and other state taxes.
Certain closing expenses and mortgage discount points may also be tax deductible. During the early years of your loan, when the interests represent the bulk of your mortgage payment, the respective tax deductions can help you save a significant amount of money.
Build Your Credit
There are many factors that affect your credit score, and one of the most important is the length of your credit history. The best tip of boosting your credit score is to improve the average length of your credit accounts, and homeownership can help you accomplish this.
Since the current length of a mortgage is approximately 15 to 30 years, having a mortgage on your respective credit history is an excellent way to expand or lengthen the average of your current credit accounts.
You should understand that each month that you pay a mortgage on time; it indicates that you are a responsible borrower which not only improves your credit score but also increases the chances of approval of your future credit accounts.
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