There is a sweet spot between being a renter or buying your own home that some people find themselves in. It’s becoming difficult for some to decide to finally jump into homeownership, especially as housing prices increase. Renting can bring many benefits like not having to worry about the logistics of home repairs and maintenance costs, as well as not having to worry about paying property taxes, however the benefits of owning your own home can outweigh renting benefits. If you’re one of these people who are on the fence as to whether you should buy a house or not, Mindy Peterson, real estate agent with Custom Fit Real Estate Group, is here to tell you about 3 perks to owning your own home.
Three Perks of Home Ownership
Having your own home means that you have the freedom to do whatever you’d like to your property. Barring HOA restrictions if you get a house with an HOA, you could paint your house whatever color you’d like, make upgrades wherever you want, and just make your home your own.
Fixed Monthly Payments
This could currently be the biggest motivating factor when you choose to become a homeowner over being a renter because of the current sellers’ market in Las Vegas, NV. If you’re worried about whether or not you can afford paying a mortgage, you should consider that rent prices will continuously increase every year. Especially in today’s market, landlords are choosing to also increase their prices to keep up with the swelling market. When you own your home it usually means you’re locked in to a 30 year payment plan which means your mortgage payment will stay the same over this span of time. If you’re paying rent that will continuously increase over time, you might as well pay a mortgage that stays the same and in the end you own what you’re paying on.
The equity you gain in your home is worth it! Equity is, “the current market value, minus any liens, like a mortgage, of your home” in other words the value difference as you’re paying down your loan and the growth of your home’s value over time (based on the market). That difference in the middle is your money, to do whatever you please with it.
Your equity is a source of ready cash, meaning you can tap in to your equity to borrow money. This means you can choose to pay off credit card debt, upgrade your home, or use it to purchase another home, however you want to spend it because it is your money.
Additional Perks of Owning a Home
It wouldn’t be enough to just cover these top three perks, there are so many benefits to being a home owner, here are a few more worth noting:
This would be more for people who are not first time home buyers. Instead of keeping your money in the bank where interest rates may be low, you should consider investing in real estate because home appreciation generally increases overtime.
As a homeowner you may qualify for tax benefits and breaks such as Real Estate Taxes, Home Office Deduction, and Energy Efficiency, according to Forbes Advisor.
Helps build credit
Although your credit will take an initial hit when you first get your mortgage, your good payment hygiene on your mortgage loan will help build your credit over time. If you continue to making your payments on time, and keep your debt to income ratio to a low or reasonable level then having a mortgage will help build your over all credit, according to Investopedia.