Are you trying to determine if purchasing a home is right for you? The reality is that there are several factors that need to be taken into consideration when trying to determine if home ownership is right for you, but the bottom line is that there are many benefits to owning a home. Here is a look at just a few of the benefits associated with home ownership.
Making a Great Investment
Owning a home has always been considered a great investment. Even when considering our recent economic troubles, owning a home is still a good investment. In fact, purchasing one while the prices are low is an even greater investment than it was a few years ago when prices were overly inflated. Although it may take some time for prices to rebound, most experts agree that the economy is moving toward recovery and home prices will once again begin to creep upward.
Enjoying Tax Benefits
There are numerous tax benefits associated with purchasing a home. In fact, all of your property tax and interest can be deducted from your gross income, which helps reduce your taxable income. As a result, your overall tax obligation is decreased, which means the government is essentially subsidizing the purchase of your home.
Keeping Monthly Expenses Stable
When you rent a home or apartment, you can almost guarantee the rent costs will go up each year. If you obtain a fixed rate mortgage on your home, on the other hand, you can expect to have the same monthly expenditure for the length of the loan. Even if you choose to obtain an adjustable rate mortgage, you can be certain the cost will stay within a certain range. And, of course, rather than paying someone else’s mortgage every time you make a rent payment, you are paying off your own investment when you purchase a home.
Forcing You to Save
Every time you make a payment on your home, a portion of that payment goes toward the principal of your home. Furthermore, as your home appreciates in value, your assets go up as well. Therefore, when you purchase a home, you are essentially forcing yourself to save money. Since many of us are so bad at saving on our own, having this form of “forced savings” in place can be a great way to get your savings in gear.
Expressing Your Individuality
When you rent, your freedom to express yourself is limited. After all, most landlords do not allow their tenants to knock out walls or to make other major changes to the home or apartment. When you own a home, on the other hand, you can make any changes that you consider necessary. Of course, if you live in a subdivision or in a historical district, you may have some restrictions in terms of the renovations you can make. Still, as a homeowner, you enjoy far more opportunities for expressing your individuality than you do as a renter.
Jim Olenbush is the owner of an Austin real estate brokerage. http://www.jimolenbush.com/ He manages a team of experienced Austin Realtors and they specialize in luxury real estate sales.
|
|