July 24th, 2014 8:17 AM by Jackie A. Graves, President
Homeownership. It shifts so many
things. If you're coming from an apartment, you may experience conveniences
like direct-access garages and walls that aren't shared for the first time. If
you've been renting a home, you will probably feel a new sense of security and
peace of mind once the mortgage is in our name. Not to mention the itch to
repaint, re-imagine, and redo at least a few dozen things.
Want to know just how becoming a
homeowner can change your life? Read on.
1. Financial Security
"The largest measurable
financial benefit to homeownership is price appreciation," said Investopedia. "Price appreciation helps build home
equity." Added Real Estate ABC: "The principle you pay on the mortgage
is like putting money in the bank, in the form of equity."
2. Peace of mind
If you worry every time your
lease comes up for renewal, those days are gladly over. Unless you refinance or
take cash out once you have enough equity, your house payment is your house
3. Pride of ownership
The feeling you get when you come
home to your place - the place you scrimped and saved for and the place that
represents a lifelong dream - well, there's just no substitute.
4. Stake in your neighborhood
Pride of ownership extends to the
homes and area around your house as well. Whether or not you move to a
neighborhood with a homeowner's association, buying a house will undoubtedly
make you more invested in what's going on around you. And that can mean
increased property values if neighbors band together for common improvements.
5. Increased interest in HGTV.
And DIY channel. And weekends at Home Depot.
Don't be surprised if you start
quoting Drew and Jonathan Scott or using terms like "mitered corners"
and "refaced cabinets." Which is good news, because the changes you
make to your home won't just mean greater enjoyment while you live there, but
also potentially greater profit when you go to sell.
"Home ownership means you have
free rein in the aesthetics of the home. When renting, you do not have the
advantage of changing your environment to please you," said Real Estate ABC. "You may be able to paint a room,
but need to repaint back to the original color scheme when you move. Owning
your own home means you can do whatever you please to make your environment
both personalized and, in the process, add value to the home."
6. Your honey do list may
But so will your satisfaction.
7. Tax breaks
"The second largest
financial benefit of owning a home is tax savings," said Investopedia.
"The biggest of these is the ability to deduct the annual interest paid on
a mortgage from income. Private mortgage insurance may also be a write off, on
addition to fees paid at closing. If you have paid points, either discount or
origination, you can deduct these as well."
8. Expert knowledge of interest
rates, neighborhood home prices, and area sales trends
When you're in the process of
buying and after you close escrow, you're more likely to be tuned into what's
going on in the market and in your neighborhood. This can help you to make
smart decisions about updates, upgrades, and refinancing, and can also make you
a trusted resource among your friends who want to buy.
9. More financial responsibility
in other parts of your life
With a home to take care of, you
may be more clued in to other long-term investments and less willing to spend
Written by Jaymi Naciri | To view the original article