Owning a home means putting down roots and having a space that is truly yours. It’s a significant moment of your life when you finally own a home. But owning a home can be daunting task because of the responsibilities and obligations that come with it, combined with the initial process it takes to get there. When done properly, buying and owning a home is a process that limits your financial risk, increases your investment power and saves you tons of money over the long term.
There is a special kind of pride in home ownership that you just won’t get by renting. When you buy a home, you experience a sense of accomplishment. You worked hard to buy your home and now you can make it your own. You can furnish it the way you want and you can decorate it to your likings. You can maintain it and keep it beautiful. Your home becomes an extension of who you are and you take pride in owning your home.
Well, homeownership is more than having a roof over your head and much more than building equity. From health benefits to better financial situations, you can feel great about your purchase with these seven benefits of homeownership:-
- It enhances quality of life: Homeownership increases stability for you and for the community where you live. Once you settle in, you make friends get to know the neighbours and develop a sense of community and that’s a motivation to help maintain a safe and thriving environment for your family and your neighbours.
- Gain Equity:- When it comes to homeownership, investment and equity are directly related. Equity can be better defined as the part of the principal balance you’ve already paid or the percentage of your home you already own. Paying the principal is like depositing money in the bank, because that money becomes available for reinvestment in the home itself or a new home.
- Strong Credit History:- Fixed rates give homeowners financial stability, not afforded to all renters. Unlike renters who can face unexpected housing cost increase, homeowners can enjoy the benefits of a fixed-rate on home loans, which can be especially helpful if you lock into a low-interest rate. Knowing that you won’t be facing a jump in your housing costs really helps stabilize your budget and helps your finances.
- Increased Home Value:- The value of your home can increase over time, making your investment grow. As you pay down your home loan over the years, you can build ownership interest called equity, which can offer financial flexibility under the right circumstances. Your home is also a legacy financial or otherwise, for the next generation.
- Stability and Security:- Your home is a place to call your own. It is your shelter in more than one way. It provides protection against both physical and non-physical elements. Home ownership is the fact that owning a home can provide a feeling of comfort and security.
- Tax Benefits:- All home owners have the benefit of saving money on their income taxes once they have made the decision to purchase. Owners can deduct both property taxes and interest paid in a given year from their gross income. When deducting these taxes and interest rates, it reduces the amount of your taxable income. In more simple terms, you save money each year.
- Appreciation:- As a general rule, home values appreciate every year. The exact figure varies from society to society. A huge benefit of home ownership is the ability to build equity in a home while the value of it increases. Home ownership is one of the few investments that allows you to increase the value of your property from simply living your day to day life in it.
Owning a home is more than a financial decision. Your investment goes far beyond taxes and equity. Owning a home means investing in the community where you live and its surroundings like parks and schools. It’s an investment in your family by providing them with the stability and consistency that comes from having a place to call home. And its an investment in yourself as you learn what the pride of home ownership is really about.
Owning your own home allows you to build memories and keep them with you. The walls you own provide a welcome home for the pictures you take as you build your new life around the things and people that you truly value.
This guest post has been written by Gunjan Johar, Real Estate Blogger.