December 21st, 2016 5:08 AM by Jackie A. Graves
Buying a home may be the American dream, but it’s also a
monumental task: You have to clean up your credit, apply for a mortgage, scrape
together a down payment, and then move all your worldly possessions in after
you close on the deal. Phew!
So then why do millions of Americans go through the trouble?
Because they know that whatever headaches and hassles they must endure are far
and away outweighed by the many benefits of buying a home.
If you need some inspiration to start house hunting
or just want to make sure you’re taking advantage of all that
homeownership has to offer, check out this top 10 list of perks that
will repay your hard work from now well into retirement.
A landlord can raise your rent whenever a lease expires—and
often by as much as he pleases. But as a homeowner, you can lock in a
predictable mortgage payment for as long as 30 years.
Instead of worrying about fluctuating rents, “homeowners
can create a budget knowing that their principal and interest payments won’t
rise … ever,” says Brian
Davis, co-founder and real estate blogger at SparkRental.com.
Bonus: Your housing budget goes toward your homeownership, not
“Owning a house provides you with a valuable asset and
financial stability,” says Peter Vekselman, a
real estate professional with Keller Williams’ Yates Estates in Georgia.
By purchasing a home, you’ll have an asset that, in many cases, will
appreciate in value over time. A $200,000 home today should see an
increase in value to $250,000, $300,000, or more—depending on how long you
plan to live there and market conditions, according to Vekselman. This
makes your home one of the best investments you can make and a way to establish
a financial foundation for future generations (aka your kids).
The many expenses of owning a home—like property taxes and
accounting costs—are tax-deductible. The
largest deduction is generally the interest you pay on your mortgage,
according to Liane
Jamason, a broker associate with Florida’s Jamason Realty
Group. “This allows you to keep more of your hard-earned money.”
What renter hasn’t thought “I’d really love to paint/alter/knock
down this wall to…”? Well, to do whatever the hell you want to do. But, of
course, you can’t—not without the landlord’s blessing. And if you are allowed
to renovate your rental, it’s the landlord who will ultimately benefit.
(Especially if you do a really awesome job at it.)
Homeowners, on the other hand, don’t need permission. They can
paint any room any color, replace the cabinets, add a deck, or do any other
modifications they wish, says Davis. “Homeownership enables you to live life
under your own rules.”
Sure, there’s the upfront cost of the down payment and closing.
“After that, the monthly outlay of owning a home is much
less than paying rent in the majority of markets in the U.S.,” says Davis.
According to ReatlyTrac, buying is the more affordable choice in 58% of U.S.
markets (figure out costs in your area with the Rent Vs. Buy Calculator). Plus, mortgage
rates are currently low, making it an economically wise choice to purchase a
home sooner than later.
Some rentals are constructed of inferior building
materials like plywood or shoddy drywall. If your house, townhouse, or condo is
built of concrete and stucco, it will provide a greater sound barrier from your
“When you own, you can also make your own modifications such
as putting up a fence for added privacy,” says Jamason.
Homeownership provides you with the opportunity to borrow money
on the equity you eventually build up by consistently paying your
mortgage. Securing a home equity loan at a relatively low interest rate “will
enable you to get financing for an emergency, large project, or other expense,”
Owning a house you plan to stay in for a while also allows you
to have an impact on your community with your taxes benefiting local
infrastructure, schools, and organizations. You’ll also have a voice—if you
wish—in how things are run in your area.
A home can be the ultimate nest egg, providing you with a
great investment for retirement. The longer you own a house, the more it should
eventually be worth.
“If you live there for 30 years, other things being equal,
the home should appreciate 100% or even more,” says Vekselman.
As you get older, you can sell the home and use the
proceeds to purchase or rent something smaller. Another option: Rent out
the house to maintain a steady income stream so you can travel or use
for other recreational activities.
may seem fairly obvious, but it’s worth emphasizing: With a rental, you run the
risk of getting kicked out at the end of your lease. With a home, you can live
there indefinitely. And isn’t there something comforting in knowing
there’s a place where you’ll always have a roof over your head?
By Margaret Heidenry - To view the
original article click here