Owning a home is one of those bucket list dreams right up there with going to Paris and visiting the Eiffel Tower. If you are thinking about buying a home, that’s one dream that will undoubtedly be one of the most rewarding. There are so many benefits of owning a home and some that are not so obvious. It’s crucial to know both the PROs and CONs when making any decision that will affect your way of life for years, even decades to come.
Below are just some benefits of owning a home to help you make a perfect decision:
Stable Monthly Payments
If you’re going to be buying a home, you’ll likely use a fixed rate to purchase it since they’re the most popular type of mortgage. With a fixed-rate property comes stable monthly payments, one of the best benefits for a home.
If you opt to rent, it’s highly probable that your property’s monthly payments will fluctuate from year to year after the initial lease agreement.
As a homeowner, the stable monthly payments of a mortgage can provide great peace of mind as it makes it easier to create a predictable monthly budget. Of course, monthly payments can change when owning a home if property taxes or homeowners insurance were to change. Still, the difference in the amount of property taxes is usually of minimal significance.
Opportunity to Build Equity
In real estate, “Equity” means the probable market value of a home minus any liens against the property, such as a mortgage. One of the most practical advantages for a homeowner is the opportunity to build equity.
The longer you own a home, the more you’ll pay towards the principal balance of any liens. As the balance of any lien against a property gets lower and (hopefully) the value of the property increases, the larger the equity.
Freedom to Make Changes
One of the most significant factors is that after owning a home, you will be capable of making changes in your humble abode.
On the other hand, with a rental property, it can be challenging to make even the simplest change, such as repainting a room. It’s often spelled out in a lease that you can’t change the property in any way.
Ownership affords you the freedom to make changes. Whether it’s painting your bedroom or building an addition, when you buy a home, you have the liberty of making changes as you see fit.
Another fantastic benefit of owning a home is a substantial investment.
A home will afford you a better return on investment than other large purchases such as a car or the latest fancy tech. When you buy a car, the depreciation begins as soon as you drive it off the dealer’s lot.
Meanwhile, homeownership gives you the reverse experience in many cases since real estate will appreciate, depending on the local market conditions. Real estate markets tend to differ, though, even if they are close in proximity. It’s critical before buying a home that you have an idea of what to expect in terms of potential appreciation over the years.
Choice of Location
Typically the number of options for a rental property are limited depending on your location. But when you buy a home, you’ll have more opportunities to pick where you want to live. And the area of a home is one of the most critical factors for many buyers like you.
Selecting a neighborhood is very important while picking a home and is one of the luxuries of owning one. When you’re making your selection, you can factor in proximity to your employer, what school district the house is situated in, and many other geographically-based perks.
As you can see, homeownership has excellent benefits. It’s essential to know all the facts before taking the steps of purchasing a home. It’s so much more than just having a place to live; it’s finding that special place that brings more meaning to the word “Live.”
Also Read: 5 Benefits of Living in a Waterfront Home