5 Perks of Homeownership
Homeownership is something many people dream of. While renting can be convenient for some, owning your own home has a lot of advantages to consider. In today’s blog, your Lake of the Ozarks real estate team discusses some of the perks of homeownership.
1. Return on Investment.
When you rent your home, you’re paying someone else’s mortgage. When it’s all said and done, and your lease is up, you have nothing to show for it. While renters don’t have to worry about paying for upkeep and maintenance issues, they aren’t getting a return on investment. Owning your own home does come with some added expenses, but your return on investment is much greater. Unlike other purchases that decrease in value, like your car, home appreciate over time. While each market has it’s ups and downs, you’re paying down your mortgage debt while the home value rises. This creates buying and reinvestment power known as equity.
2. Tax Benefits.
The government encourages homeownership, which encourages economic growth, by offering incentives. As a homeowner, you can take advantage of tax benefits that aren’t available to renters. The largest tax benefit is the ability to deduct the mortgage interest you pay. This is particularly beneficial to new homeowners when most of their payment is applied to the interest. Payments on private mortgage insurance and other home-related purchases also qualify for tax benefits.
3. Control of Your Living Space.
As a renter, there are certain aspects of your living space that you have no control over. You typically can’t modify the living space to better suit your needs. Owning your own home allows you the benefit of making improvements to your home to better fit your lifestyle and your needs. In addition, these improvements often lead to an increased home value. The power of home equity can also aid in these improvements when cash funds aren’t an option.
4. Stability and Sustainability.
Moving from rental to rental for whatever circumstances is inconvenient and burdensome. When renting, you never really know where you’ll be living next or what your future expenses will be. Owning your own home creates stability. It allows for a financial and emotional investment in both your living space and your community. Rent prices can fluctuate drastically; your mortgage payment will stay the same, and will often be less than what you would pay monthly for rent.
5. Strong Credit History.
Homeownership can actually improve your credit score. Making your monthly payments on time creates a reliable payment history and shows your creditworthiness. As your credit improves, you could even consider refinancing for a lower interest rate to save even more money on your home. A strong credit history will be beneficial in the future to obtain other loans, possible for buying a car or making home improvements, or even upgrading to a new, larger home.
If you’re ready to take advantage of these homeownership perks, talk to us about buying a home at the Lake of the Ozarks. We’re specialized in working with first-time home buyers, and we’ll help you find the perfect home. The Devine & Associates team will work with you, going above & beyond the hopes and dreams of our buyers. Give us a call at 573-286-6216 today!
1. Return on Investment.
When you rent your home, you’re paying someone else’s mortgage. When it’s all said and done, and your lease is up, you have nothing to show for it. While renters don’t have to worry about paying for upkeep and maintenance issues, they aren’t getting a return on investment. Owning your own home does come with some added expenses, but your return on investment is much greater. Unlike other purchases that decrease in value, like your car, home appreciate over time. While each market has it’s ups and downs, you’re paying down your mortgage debt while the home value rises. This creates buying and reinvestment power known as equity.
2. Tax Benefits.
The government encourages homeownership, which encourages economic growth, by offering incentives. As a homeowner, you can take advantage of tax benefits that aren’t available to renters. The largest tax benefit is the ability to deduct the mortgage interest you pay. This is particularly beneficial to new homeowners when most of their payment is applied to the interest. Payments on private mortgage insurance and other home-related purchases also qualify for tax benefits.
3. Control of Your Living Space.
As a renter, there are certain aspects of your living space that you have no control over. You typically can’t modify the living space to better suit your needs. Owning your own home allows you the benefit of making improvements to your home to better fit your lifestyle and your needs. In addition, these improvements often lead to an increased home value. The power of home equity can also aid in these improvements when cash funds aren’t an option.
4. Stability and Sustainability.
Moving from rental to rental for whatever circumstances is inconvenient and burdensome. When renting, you never really know where you’ll be living next or what your future expenses will be. Owning your own home creates stability. It allows for a financial and emotional investment in both your living space and your community. Rent prices can fluctuate drastically; your mortgage payment will stay the same, and will often be less than what you would pay monthly for rent.5. Strong Credit History.
Homeownership can actually improve your credit score. Making your monthly payments on time creates a reliable payment history and shows your creditworthiness. As your credit improves, you could even consider refinancing for a lower interest rate to save even more money on your home. A strong credit history will be beneficial in the future to obtain other loans, possible for buying a car or making home improvements, or even upgrading to a new, larger home.
If you’re ready to take advantage of these homeownership perks, talk to us about buying a home at the Lake of the Ozarks. We’re specialized in working with first-time home buyers, and we’ll help you find the perfect home. The Devine & Associates team will work with you, going above & beyond the hopes and dreams of our buyers. Give us a call at 573-286-6216 today!
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