June is National Homeownership Month! Whether you are a veteran homeowner, first-time buyer or finally considering purchasing that cute house on the corner with the “for sale” sign that’s calling your name, being able to call a home your own is something to celebrate. If you are thinking of taking the homeownership leap, but can’t seem to find the courage to actually make the big move, here are 5 benefits of owning a home that are sure to inspire your decision.
Freedom to Own
Perhaps the most obvious plus of owning your own home is being able to customize it to fit your own style. That “dream home” you always imagined will soon become a reality with your newly found freedom to renovate, design and add anything and everything your heart desires. About Home describes “pride” as being the number-one reason individuals wish to own their own home. You can now paint the walls any color you want and add permanent fixtures without having to worry about breaking any leasing regulations or restrictions. It is now officially your space—make it your own!
Believe it or not, there are many financial benefits to owning a home. As a homeowner, both mortgage interest and property taxes are deducted from your annual income tax. According to Forbes, this is a large deduction for many people being that interest payments is often the most prominent component of your mortgage payment in the early years of homeownership. And to top it off, current mortgage interest rates continue to remain low, so why wait?
There’s no better way to build your credit than becoming a homeowner. Equity, or your home’s increase in value versus its mortgage, is one effective way to gain credit opportunities. As you continuously make your mortgage payments every month, equity will increase, enabling you to use this towards school payments, additions on your home and other wise investments.
Owning a home is a stable and reliable way to invest your money. To state it even more simply, homeownership is, in a way, a forced savings. According to an article in The Wall Street Journal, paying your monthly mortgage isn’t a cost—it’s a payment to yourself, allowing for higher credit, equity and overall profit down the road. View home payments as maintaining the best financial discipline, where you invest in something that is bound to grow over time.
The Big Picture
Although purchasing a home may seem a bit intimidating, if you take a step back and look at today’s average rental costs, owning can actually save you money. Instead of helping your landlord pay off his building, why not pay off your own? Rents rise over time, while mortgages remain stable and eventually decline as the years progress. REALTOR® Mag goes on to discusses the stability benefits of being a homeowner, where remaining in one neighborhood and becoming involved in the community forges long lasting friendships, memories and true feelings of home.