Advantages of Homeownership
To buy or not to buy? Owning a home is often referred to as “The American Dream!” While renting can be a great choice for some, there are many advantages that come with homeownership. Clear benefits include increasing equity, building net worth, appreciation growth and more! Here are five of the overlooked advantages of homeownership.
1. You won’t always have a mortgage payment
That’s right…one day that mortgage will be paid off! When you purchase a home, your monthly costs will start to work as forced savings, coming in the form of equity. As you continue those payments and increase your equity, your net worth will grow. Reinvest those savings into your future…or even your next dream home! If you’re a renter, it’s never too late to make the dive into homeownership.
2. Stable Monthly Payments
As a renter, when your lease expires, your landlord is free to raise the rent but as much he/she pleases…it’s like walking on eggshells! As a homeowner, you lock in your rate, lock in your payment, and you are good to go for 30 years (or less). Monthly payments can change in the form of taxes or property insurance, but the amount in change in property taxes is extremely low. Have peace of mind with knowing your monthly budget.
3. Tax Breaks
In case you didn’t know, both the interest and property tax portion on your mortgage is tax deductible. During the first several years of homeownership, the mortgage is almost all interest…meaning there is a nice deduction at the end of the year. Keep more of that hard earned money!
4. It’s Cheaper
Looking at a national average, a monthly mortgage is cheaper than renting! Monthly rental prices have been skyrocketing over the past 10 years. Take advantage of today’s low mortgage rates and get more for your money when purchasing. While purchasing a home comes with more upfront costs for down payments, insurance and appraisal fees, it is such to save you in the long run.
5. Build Your Credit
A great tip for improving your credit score is to improve the average length of credit accounts. With the typical 15 and 30 year mortgage options, having a mortgage on your credit history is a great way to lengthen your credit accounts. Each and every month that you pay on time, it shows you are a responsible borrower, increasing your credit score and improving your chances for future approvals.
Are you ready to embrace the advantages of homeownership with stability, savings and predictability? Give Patrick and The Stracuzzi Team a call if you have any questions or are ready to smooth sail through the home buying process!