Having mixed feelings about buying a home? If you’re a first time homebuyer tired of paying rent or living at your parents’ house, you might consider getting your own space.Most first time homebuyers are actually young professionals – young couples and singles, who have the budget but scared about taking on debts and getting tied down.
In the event that you actually opted to purchase real property because you can afford it, here are 10 more encouraging reasons why you should consider getting that dream home.
- This sounds cliched, but buying a home is one of the best, long-term investments you can ever make. Property prices are inclined to eventually rise, and housing trends are likely to continue. So, if you’re purchasing a home now, you have placed your personal finance in a safe investment box. If you aim for affordability, distressed homes are often up for sale so you might want to start your shopping there. Bear in mind however, that such properties are not upgraded or improved so you’ll have to shell out more than you think.
- It comes with lesser tax. The interest you pay on your mortgage is deducted from your income. This tax break value relies on several factors such as your personal tax range, mortgage size, interest rate, and the duration of your mortgage. If a mortgage is new, the interest rate you pay monthly is greater and the tax break is bigger. So, recent buyers with newer mortgages are likely to achieve the most benefit.
- Enough putting cash into your landlord’s pockets each month. Wouldn’t it be satisfying if you don’t have to pay for something that you’re not capable of owning? Renting costs are actually higher than monthly mortgage payments. Even if the property you’ve bought did not appreciate in value or price, you can still sell it and reclaim some of the cash you have invested in it. This way, you’ll have the stability and security of owning a home and live in it all you like. Plus, there will be no worrying about rent increases or negligent and tyrannical landlords.
- Take advantage of low interest rates. This makes it comparatively cheaper in taking out a mortgage. Low interest rates mean lesser payment for your home and the sooner you can pay off your mortgage.
- You can do home improvements anyway you like. You can choose what needs to be replaced, renovated or overhauled. If you decide to sell the house, these renovations will add value and make your property marketable.
- You can use your home equity for low-cost loans for other personal purposes. You will be able to access the paid equity you have accrued in the form of home equity loans or home equity lines of credit. Since home equity loans and lines of credit are secured, they cover lower interest rates than other kinds of loans, such as car loans. They also have an interest that’s tax-deductible.
- As a homeowner, you’ll be able to get to know your community. You can participate in community affairs, have a greater voice, and have more influence when it comes to discussing issues about community development, school, traffic, and the like. Renters are more transient and detached.