PERKS OF HOMEOWNERSHIP
It is never too soon or not soon enough to set a goal for homeownership that can propel you toward a healthier future. Owning a home has many essential benefits, like creating a sense of belonging to a community, building wealth, and providing financial security. There are many clear economic benefits to owning a home, such as increasing equity, growing appreciation, and financial and mental freedom. Here's a look into a few often-overlooked financial advantages of homeownership. Being aware of these benefits can steer you in the direction of more excellent stability, savings, and predictability.
One of the most significant tax benefits of owning a home is deductions. In most cases, the interest paid on your mortgage is deductible. If your home's mortgage isn't greater than $750,000, you can deduct the interest you pay towards the loan. Another significant tax break to owning a home is the amount you pay in property taxes. You can deduct your property taxes up to $10,000. If the property taxes are applied to an escrow account with your lender with your monthly mortgage payment, you would see the amount you paid in taxes on your IRS Form 1098–so you can apply that deduction directly to your taxes. If you pay it directly, make sure you keep a copy of the receipt for records. One tax benefit that many first-time homebuyers are not aware of is the fantastic tax deduction for making energy-efficient upgrades. Homeowners can claim deductions on solar energy–both for electric and water heating equipment and much more smoothly. Since our recent pandemic, more people are working from home. Did you know there are benefits for work at home employees? Entrepreneurs can use their side hustle or full-time work from home positions to deduct home office expenses and business space. I always suggest contacting a tax professional to get more current and relevant information specific to your situation.
Stable monthly payments while building equity are more than enough reasons to look into homeownership.
Let's get straight to it so we can get right past it to the real meat and potatoes. Yes, there are many costs associated with purchasing a home, such as; the down payment, appraisal fee, and closing cost. It is no secret that there is the upfront cost of buying a home is substantially higher than merely paying monthly rent. However, owning a home is cheaper than renting over time, which is a great benefit. One of those benefits involves the most popular type of mortgage, a fixed-rate mortgage, one of the best benefits of owning a home! A fixed-rate mortgage means what it states, a "fixed" rate. A payment that does not change. If you're going to be financing a home, the mortgage product you'll use for the purchase will likely be with a fixed rate. The stability of fixed monthly payments that are included with homeownership provides excellent peace of mind. It makes it easier to predict a monthly budget. We cannot discuss savings without discussing EQUITY. First-time homebuyers frequently ask, "What is Equity?". The definition of equity is the market value of a home minus the outstanding mortgage. One of the significant advantages of homeownership is the opportunity to invest. The longer that you own a home and pay towards the principal balance gets lower, and hopefully, the property's value increases, the larger the equity. More bang for your buck!
Last but not least, noteworthy.
FREEDOM of Creativity-There is complete freedom to redecorate and renovate the property as you are the owner! Woo-hoo! You cannot make any changes to your rental house or apartment without your landlord's approval.
FREEDOM of Choice - You can choose to sell whenever you like without notifying anyone. The rules and obligations bound you in a lease agreement. As a renter, at any time, the landlord could evict you with a month's notice. He/ She can put the property up for sale to make a profit if real estate values increase
FREEDOM of Opportunity - Buying a house can serve as an investment. In most cases, you can buy it and then rent it out to earn monthly profits.
If you are ready to start your buying or selling process
give me a call at 864-640-0041 -
I´m happy to answer all your questions.