Benefits of Buying a Home
There are many benefits of buying a home. The first is, you have a place to live that you can call your own. Let’s cover some other benefits and hidden ones too.
Homeownership – A Long Term Investment
The first housing census was done in 1940 by the U.S. Census Bureau. They state that in 1940 home values were a median value of $30,600 and rose to $119,600 by 2000, after adjusting for inflation.
https://www.census.gov/data/tables/time-series/dec/coh-values.html
In this 60-year period, median home values increased. The fastest was 43% in the 70s and the slowest was 8.2% in the 80s. This chart alone shows the consistent rise in housing prices.
If you take a look at the CoreLogic HPI Forecast, it “indicates that home prices will increase on a month-over-month basis by 0.3% from July 2022 to August 2022 and on a year-over-year basis by 3.8% from July 2022 to July 2023.
Tax Breaks As A Homeowner
We’re not tax experts; we’re real estate professionals. You will need to consult with your tax advisor on your circumstances. That being said, mortgage interest, points, insurance, property taxes, and certain closing costs may be tax deductible on your federal taxes. Some states allow these deductions also. Who doesn’t love to save at tax time?
Being a Homeowner Gets Easier Over Time
As a first-time home buyer, purchasing a house can be overwhelming. There are all sorts of things to deal with such as a down payment, finding the perfect home, unexpected costs, and more.
Over time things get easier. If you decide on a fixed-rate mortgage, payments will not increase. As years go by and you are more established in your career, payments become easier.
Building Equity In Your Home
By making mortgage payments year after year, you gain equity in your home. This is an asset that you may be able to borrow against. Kind of like a forced savings account that can benefit you in the future. If you are renting a home, you’re not building savings for yourself, you’re doing it for the landlord. Homeownership has been said to be an effective way to build wealth.
Can Improve Credit Rating
If you don’t have a long credit history or many installment accounts, having mortgage payments can help drive up your credit score. Of course, making those payments on time matters and shows you’re a responsible borrower. On your credit report, a mortgage holds more weight versus credit card accounts. This can help your score be higher than someone who doesn’t have a mortgage payment and has lots of credit cards.
Redesign Your Home
This is a huge benefit versus renting. Many landlords do not allow tenants to make changes to the rental home. Even simple things, such as painting walls are sometimes a big issue if you are renting a home or an apartment. When you own your home, you have the choice to design your home any way you like. You can remodel your kitchen and bathrooms, paint the walls any color you choose, and so many other redesign options are available to you as a homeowner. There are exceptions that you may need permits for, like adding a deck or shop in the backyard.
There are even more benefits of owning a home. If you choose the right community, there may be community playgrounds, a swimming pool, and other activities that only residents of the community are allowed to use. Homeownership makes you feel good and has been shown to help with physical and mental health.
We can help you find your forever home. Call us today. 229-262-1388
Tax Breaks As A Homeowner
We’re not tax experts; we’re real estate professionals. You will need to consult with your tax advisor on your circumstances. That being said, mortgage interest, points, insurance, property taxes, and certain closing costs may be tax deductible on your federal taxes. Some states allow these deductions also. Who doesn’t love to save at tax time?
