One common dream that most people have, no matter where they live, is to own their own home. Regardless of whether you decide on living in Greenville South Carolina or Manhattan, New York, it is a huge milestone. Reaching this goal represents a stability and success that we long for on a subconscious level.
While there are plenty of obvious advantages to having a place of your own to call home, you might not know about some of the lesser-known perks.
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1. You’re Making an Investment on Your Future
Don’t look at your mortgage payment as an expense. Look at it as a way to protect your family and your future!
When you rent, your money goes straight into the pockets of your landlord. But a mortgage payment will slowly net you equity on the home you’re living in.
Building this equity will come in handy down the road if you ever need a line of credit to cover renovations or another major expense. You don’t get this benefit from renting!
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2. Owning a Home Gives You Tax Breaks
Yes, you have to pay interest on your mortgage, but you also get tax advantages each year.
Your accountant can help you learn about the tax perks for homeownership in your state. Typically things like closing costs and mortgage interest payments are considered deductions.
Depending on your situation, you could write off your mortgage insurance, property taxes, and other expenses. If you’re in a tight tax bracket, this could be exactly what you need to save yourself some money!
3. You Become the Designer of Your Dream Home
In a rental property, your creative interior and exterior design ambitions are subject to your landlord’s rules. But when you buy your own home, the roof is the limit!
As you shop around for your dream house, you’ll see things you love and other characteristics of a home you want to avoid. You can decide whether to buy something already made or build your own.
If you want something custom-made to suit your preferences but are concerned about the cost of a from-scratch house, look into a manufactured home.
Unlike mobile or modular homes, these are durable and high-quality constructions. They can look almost exactly like foundational houses. A key difference is that you can have yours custom-built to your specifications without paying a fortune.
4. You Can Boost Your Credit Rating
Your credit score is an important part of your financial health. A good score can save you thousands of dollars, while a poor rating will cost you even more in higher interest rates.
Renting a home rarely impacts your credit unless you don’t pay and the landlord files a suit against you. When you pay regularly on your mortgage, though, it helps your credit rating and labels you as “responsible.”
A solid mortgage payment history nets you more impact than multiple credit cards.
Don’t worry if you end up buying a house with a low credit score and you’re stuck with a higher interest rate. Once you make regular payments and increase your credit score, you can refinance and lower your interest rate.
5. Your Health Could Improve
When you own a home, you’re usually making improvements and performing maintenance. Things you wouldn’t do in a rental are exciting when it’s your own property!
As you work on taking care of your yard and making everything exactly how you want it, your mental and physical health improve.
It’s your neighborhood, so you’ll probably be taking walks to get to know it. You’ll enjoy being outside in your backyard.
Slowly, you’ll notice that buying a home was a great investment in your, and your family’s, overall wellbeing.
Conclusion
The most well-known advantage to buying a home is the stability that comes with it. It’s the reason that people for millennia have built even the most primitive of shelters!
Today, the benefits go well beyond security and safety. These five hidden perks to home ownership will show you that it’s time to move from renting from others to being your own landlord.
