Becoming a homeowner is a big financial decision, but it also comes with some major financial perks!
1. Begin Building Equity
When building your home equity, you are creating a financial buffer. If ever you need to take out a loan on short notice, you will be able to do so by taking it out using the equity you’ve built. As your home equity increases, your financial future brightens.
2. Stop Paying Rent
Yes, you’ll be paying a mortgage, but that isn’t money you’ve lost. Rather, it is money you have now invested in the value of your home.
As a renter, you pay a monthly fee (sometimes twice as much as a monthly mortgage payment) that you will never see again. Also, rent will generally increase over time. Mortgages, on the other hand, can be “fixed,” providing a consistent monthly payment for years to come.
3. Freedom To Modify
Many rental agreements state clearly that modifications to the home is not allowed or is very limited. In your own home, you have the freedom to paint, plant, tear down, build, or remodel as you see fit!
4. Home Ownership Tax Deductions
Homeowners receive a number of tax breaks, the primary being a deduction on the interest and property taxes related to your home loan. You may also be able to write off mortgage points on your loan within the first year.