THE BENEFITS OF HOME OWNERSHIP

Purchasing a home is one of the most important decisions of your lifetime, so it’s easy to become overwhelmed at the entire process. You may feel that you are comfortable renting, yet there are many good reasons why owning your home can be one of the best investments in your future you will ever make.

The freedom of owning your home cannot compare to the restrictions that renters experience. You can paint the walls any color you like, decorate a nursery, or landscape the yard. Your lifestyle will also change; when you live in a neighborhood or complex that is primarily owner-occupied, your neighbors have also invested in and care about their property. Naturally, they are willing to invest time, money and effort to improve their property and community, which in turn improves the value of your property.

Another benefit is the freedom from rent increases. If you have a fixed-rate mortgage, your payments of principal and interest remain the same. Furthermore, with each mortgage payment, you build up equity in your home. Typically, the longer you own the home, the greater your equity becomes. With these payments comes peace of mind: you can live in your home for as long as you wish without a landlord to dictate rules. In the long term, the benefit proves immense. Interest paid on a mortgage incurred in buying your primary residence is deductible. In the early years of your mortgage, most of your payment is interest. Remember that real estate taxes are also deductible. Later on, should you decide to take advantage of the growing equity in your home by taking out an equity loan, that interest may also be deductible.

LEVERAGING
When you purchase your home you are leveraging your money. With as little as 3.5% down you can acquire 100% ownership, a great return on your investment!

PAY BACK ON IMPROVEMENTS
A renter typically gets no financial benefit from any of the improvements they make on the property, either to the home or yard. But as a homeowner, you can realize some or even all of the costs (and maybe even a profit) from improvements when you sell your home.

TRADE-UP VALUE
Even if your first home isn’t your dream home, you will be working your way up to it. With appreciation and the possibility of a return on improvements, it may provide you with enough equity to make a down payment on your dream home later.

INVESTMENT PROPERTY
For some, second single-family homes or condominiums are proving to be good income investments and tax shelters. You will be realizing profits and tax benefits from renters who may not know the benefits of owning a home.

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