It has always been part of the “American Dream” to own a home. However, when we remember the fact that a housing crisis helped cause a recession over a decade ago, you may feel a bit more skeptical about whether home ownership is the right move for you and your family.
There are still many benefits to owning a home. There are some that purchase a home in order to rent out rooms, which can make their real estatement investment profitable more quickly. Of course, there are more affluent investors that add properties to their portfolio, hoping that home prices rise in the short-term and/or long-term. Either way, here are some of the benefits that home ownership can offer.
More Money and More Equity
We are all aware that homes can depreciate, but let’s assume that you make the right kind of purchase and your home rises in value. If your home price rises significantly, this is great news for you and your financial future, as you are owning a home that is demanding more money on the market.
Of course, you should also make the point of purchasing the right home, and using the right lender. If you are buying a home at a great time in a neighborhood that is gentrifying or rebounding in any way, it might be one of the best financial decisions you ever make.
Deductions and Perks
You are now eligible for new tax deductions now that you own a home, which might mean saving significant amounts of money. Of course, this depends on which tax deductions you are utilizing. You also might be able to save money through mortgage points, as well.
In addition, owning a home can lower all sorts of payments. For example, you might save money on car insurance. If you are interested in a business loan of some sort, owning a home can certainly help you obtain one.
Avoid Rent Changes
If you are living in a metropolitan city and are renting your home, you might be familiar with how dramatically rents have risen over the past several years in various parts of the United States. The global success of Silicon Valley has affected the housing market in San Francisco significantly, with rents rising as much as 50% in just several years.
There are laws that allow landlords to raise rents, and this means that you will be spending an enormous amount of time and energy to adjust. While it might not be the most obvious reason to purchase a home, it might be something to consider.