The housing market has been one of the few industries that did not take a large hit due to the COVID-19 pandemic. In fact, right now the housing market is the highest that it has been in years. This housing boom has made a lot of people consider finally making the decision to buy a home of their own or to move into a home that fits their needs better. For those considering buying a home right now, or for those who are still hesitant about home buying, let’s look at just some of the benefits that come with owning your own home.
Benefits of Homeownership
Financial and Tax
There are many financial benefits to owning a home, some of which you may already know. Homeownership is considered one of the best long-term investments. The longer you own your home the more the value of the home will increase. As you pay off your mortgage each month you gain equity in the house. Eventually, this equity can be seen as a form of long-term savings since you can tap into the equity or use your home value as part of your retirement savings.
Along with the financial benefits, there are also tax benefits. Tax deductions are the most well-known benefit of owning a home. Things like mortgage interest and some home improvements are tax-deductible and could lead to a bigger tax return for the homeowner.
While some home improvements are tax-deductible, that is not the only benefit of making improvements to your home. Homeownership allows you to make the changes and improvements that you want to make. You don’t have to go through a landlord for any changes that you want to make to your home like you would have to with a rental. You can customize the home to fit your needs and style choices/preferences. These home improvements can also help increase the value of the home over time.
Cheaper than Renting
While the first few years, it may seem that your mortgage payments are more than what you would be paying as a renter, over time as you pay the interest portion of the loan the payments will become lower than what you would be paying in rent. Not to mention once you pay off your mortgage loan you will be able to put aside that money for other things, while there is no point while renting where you would be able to stop paying.
Research shows that homeownership has a positive impact on the educational achievements of the children of homeowners. The stability associated with homeownership has also been shown to benefit the children of the homeowners in other ways throughout their lives.
Homeowners are more likely to be involved in their communities when compared to renters. Homeowners are more likely to engage in local elections, civic groups, and neighborhood groups and clubs.
In general homeowners and their children are shown to have a higher rate of health and happiness compared to renters. The stability of homeownership positively affects the homeowners’ mental and physical health.
These are just some of the many benefits of owning your own home. As more homes enter the market and are being built now might be the right time to consider finally investing in a home of your own.
When you do decide to buy your dream home, let Metropolitan Title help you protect it with title insurance.