After the recent housing crisis, you may be feeling wary about homeownership. However, with rents on the rise and the housing market on the rebound, now may be the perfect time to consider buying a home. A home purchase gives you the opportunity to:
- Transform your space
- Earn equity
- Pay a fixed amount
- Decrease your tax bill
Transform your Space
When you own a home, you can make changes to suit your preferences and lifestyle. For instance, you can take out walls to create an en-suite bathroom or transform a small bedroom into a walk-in closet. You can make these changes without losing a security deposit.
Earn Equity
By renting, you are paying for a short-term commodity. As a result, you will not receive a return on the money you spend for rent. When you make a mortgage payment, you are building home equity.
Pay a Fixed Amount
Many home loans come with fixed payment terms. If you select this option, you’ll have the same payment amount for the duration of your loan. Rents have a tendency to creep up on you, so within a few years, you could wind up paying 10 or 20 percent more for your residence than you were when you first took out the lease.
Decrease your Tax Bill
Lowering your tax bill is a major benefit of owning a home. You can deduct the amount of interest that accrues for your home loan. Other deductions include the cost of making your home more energy efficient as well as home office expenses.
Final Thoughts
The benefits of buying a home instead of renting a residence are financial and personal. With your own home, you’ll gain security, more financial stability and a place to be yourself.
