The homeownership rate in America reached 65.1% at the end of last year. While it’s a dream for many, there are also a number of hidden benefits of owning a home.
A home is more than a place to put your stuff or a building where you’ll watch your children grow older. It can also become an investment in your future. However, not all the advantages of owning a home are about money.
Do you know the top five benefits of buying a house to call your own? Keep reading to discover the hidden benefits you’re likely not aware of!
1. It’s a Good Investment
One of the top benefits of owning a home is the long-term investment.
How much money are you wasting on rent every month? Instead of burning through your savings account, put that money to good use. Buying a home will allow you to invest your money in a home that will grow over time.
Some people think investing in stocks has a higher payoff. However, you need to think long-term. Investing in a home now could help you generate more over the years.
At the same time, you’ll no longer waste away your savings on your monthly rent.
Many people set their sites on purchasing a new home. However, there are also many older homes available on the market for you to choose from. Owners of older homes often list their properties for less than these newer homes.
As a buyer, that could work to your advantage! If you’re on a tight budget, you can purchase an older home at a better price. Opting to purchase an older home can also help you live in a neighborhood that’s usually out of reach.
If that’s not enough to convince you, consider the forced savings and wealth accumulation. The equity you build in your home is technically a type of savings. With renting, on the other hand, you’re not increasing your net worth.
Homeownership is a great way to accumulate wealth.
2. Ownership Gets Easier with Time
35.8% of millennials are now homeowners. It’s often more difficult to buy a home when you’re younger and lacking the proper savings. After all, you’ll need to provide a down payment and the unexpected costs of homeownership over the years.
You could feel that financial pinch for a while.
However, homeownership gets easier with time.
First of all, you don’t have to worry about mortgage payments increasing if you have a fixed mortgage. Once you establish your career, those payments will also feel more affordable, too.
Meanwhile, tenants get rent raises that match their higher salaries.
Paying your mortgage over the years will also help you build equity with each month. This will become an asset that you can either sell or borrow against in the future.
When considering the advantages of owning a home, think long-term.
It might feel difficult right now, but over time, it will become easier. Owning a home sooner rather than later will set you up for long-term financial success. If you get started now, you can improve your financial situation over the years to come.
3. Tax Breaks and Credit Scores
The tax breaks you’ll receive as a homeowner are strong benefits of owning a home, too.
Mortgage interest and certain closing costs are usually tax-deductible. You might want to check with a professional beforehand to evaluate your individual situation. You’ll receive a lot of this relief during the early years—when you’re paying for the bulk of your mortgage interest.
Mortgage insurance and property taxes are often deductible, too. However, these cases apply to federal taxes. Many states allow similar deductions as well.
When you sell your property, you can also take up to $250,000 in profit, tax-free. For couples filing jointly, it’s $500,000.
Buying a home can also improve your credit score. If you don’t have a long-standing credit history or installment accounts, this is a great way to build your credit. As long as your mortgage is well, you can dive your credit score up in three ways:
- Consistent payments show you’re a responsible borrower
- Credit bureaus give more weight to mortgage payment histories
- Few landlords report rental payments (your mortgage gives you an extra account on your credit report)
If you need to build your credit score, consider the advantages of owning a home!
When you rent an apartment or home, you’re limited to the landlord’s preferences. Not every landlord will let you paint the walls or make structural changes. As a homeowner, however, you have plenty of freedom!
Do you want a small zoo of cats, dogs, and birds? You won’t have to pay a pet fee! Do you want to strip away the current wallpaper and paint a mural?
That’s your choice!
As a homeowner, you can design your home so it suits your needs. You can do everything from drilling holes in the walls to updating the paint. Regardless of how you want to treat your home, the choice is yours.
There’s no landlord to list a bunch of rules and regulations. Instead, you have all the freedom you need to design your home the way you want.
5. Health Benefits
You probably didn’t realize that there are health advantages of owning a house.
First of all, owning a home can help improve your mental and physical health. Instead of restraining yourself to a small apartment, you’ll have plenty of space to run around in a backyard. Soaking up that Vitamin D from all the sunshine can improve your mood, which will benefit your mental health.
You can also meet and befriend your neighbors. Improved community engagement is a great way to boost your mental health. If you have kids, you can also help them make new friends, too!
Finally, there are higher educational attainments for homeowner’s children.
Home Sweet Home: 5 Hidden Benefits of Owning a Home
On the fence between renting and owning? Consider these five hidden benefits of owning a home before you make your choice. That home, sweet home is just within reach!
Ready to talk about your mortgage? Get a free quote from our team today!