10 Benefits of Home Ownership
Being a homeowner can save you from unnecessary disappointments when you pay your house rent late. It’s a good feeling to own a home, primarily due to the flexibility involved.
When the Coronavirus pandemic hit our country and the world, homeowners had more advantages over renters. Why? Because after losing jobs, it must have been a challenging experience to pay rent on time. Although homeowners struggled with mortgage repayment, they were far better than non-homeowners.
The pandemic has been an eye-opener, and more people are focusing on owning a home where they have the freedom to stay and do other things like agriculture.
Now, before investing in owning property, you need to understand the benefits involved.
10 Motivating Benefits of Owning a Home
Everyone likes the freedom of space and the ability to do what they want without disturbance. For instance, if you’ve got your compound, you’ll plant flowers or vegetables to save on grocery costs. In addition, you can also rear chicken and other domestic animals that contribute a lot to your diet.
I bet you won’t have that freedom in a rented apartment.
- Homeownership saves you from future inflation
When you take a fixed-rate mortgage loan to buy a home now, the payment won’t increase if interests increase in the future. With the current economic trend, especially with the influence of external factors such as pandemics and war, the cost of living may never return to where it used to be. That said, homes increase in price, and so is the mortgage loan you take plus the interests.
So, a fixed-rate loan can help you avoid future inflation.
- You save on taxes
Saving money through taxes is one good thing that happens when you become a homeowner. You can deduct property taxes involved in installments.
You can include private mortgage insurance in your expenses, which will reduce the annual tax you could have paid.
Home is a long-term asset that appreciates value as time goes by. Houses lay on the land, which will never depreciate.
All you need is to keep the house in good condition by maintaining it all through.
You can buy a home at 15 million and, after like ten years, sell it at 25 million. That’s a cool 10 million profit.
- Social stability
It feels good to stay in an area you know you can stay there forever. That can only happen when you have a home. Of course, you cannot stay in a rented apartment forever because, at some point in life, you’ll need to settle.
Owning a home assures you of future security. If you lose your job, you still have a place to stay. You can strategize on what to do next without much stress from the landlord.
In addition, owning a home serves as a good retirement plan where you settle away from all the noise and so your things privately. Your home compound can be a business unit if you invest in agricultural activities like dairy farming.
- Build equity
When paying a mortgage, it’s like you are forcefully saving money. That home you are paying its mortgage later becomes your net worth.
So, you are building your home equity while paying monthly mortgage installments.
- You build a strong credit history
A good credit history can help you get millions of money to invest in other businesses. Once you pay your mortgage installments on time, you even build your credit score.
After some time, you can also refinance your mortgage and get a fresh one to buy commercial property.
Remember that you’ll always need an excellent credit score to make it in quality investment plans.
- You have your privacy
You don’t have to deal with noisy and rude tenants when you are in your home. You have your space to do what you think is suitable for you and your family.
In addition, there won’t be anyone to track your progress once you have your home. You can comfortably leave and come back home without bothering anyone.
- You are a step ahead
Indeed, you can’t compare a homeowner without a car to a car owner without a home. A car is a depreciating asset, unlike a home, which always appreciates.
Owning a home is one step ahead in becoming what you want in life. Sorting out your home keeps your family satisfied.
In addition, you can focus on other investment plans after you have a roof over your head, which sounds good.
- No rent increments
Landlords can be frustrating at some points. They can wake up one day and decide to add a 10% increment to the monthly rent.
When it comes to that, it’s either you take it or leave it. After all, it’s their property, and you got no shares.
Once you own a home, forget about those weird rent increments. Your only focus is mortgage repayment, which never changes if it’s a fixed-rate loan.
Well, you’ve seen all the benefits you could gain when you plan to own a home. At least, you are now ready to make an informed decision when buying a home.
Frequently Asked Questions
- What are the social benefits of owning a home?
One of the most significant benefits to society is a reduced crime rate since you’ll also contribute to ensure that the area is secure. You can also participate in other activities like making your neighborhood’s roads among the best. Of course, you don’t want to get stuck in the mud when it rains, so you’ll participate in activities to make your area the best.
- How do I benefit financially if I become a homeowner?
You can save money through reduced taxes when you include mortgage insurance costs. You’ll also save rent that you could have paid since you will use the funds to pay for a house which later becomes your net worth. In addition, you’ll profit from selling your home when you plan to sell it.
- Which is better, homeownership or renting?
I would go for homeownership if I had the financial ability. However, if you don’t have enough income to pay your mortgage, go for renting till you are ready to own a home.