Buying a home is a big commitment, but for many people the investment pays off. Buying a home not only frees you from the hassles of renting, but also makes financial sense. Let’s take a look at a few of the key benefits of buying a home.
Home Prices Are Rising
According to data collected by Clear Capital, home prices have been rising for several years and will continue to creep up during 2016. By January 2017, homes could cost 3 percent more than they did in January 2016. Buying a property now could be a great investment, whereas delaying could lead to you being priced out of the market.
You Can Borrow Against Your Home Equity
Many people worry about tying up their savings in a home. What if you need that money later to pay college fees? Thankfully, buying doesn’t have to cut off your financial flexibility. If you need cash several years from now, you can refinance your mortgage to get the resources you need. Borrowing against your home equity can be a great way to access attractive interest rates when you need money, compared to typical rates on an unsecured loan.
Home Ownership Brings Tax Benefits
When calculating the costs of home ownership, remember to take tax benefits into account. The U.S. tax code allows you to deduct your mortgage interest from your taxable income, as well as the closing costs associated with the home purchase. Property taxes are also fully deductible. These benefits can significantly reduce your tax bill, which means that owning a home may be less expensive than you think.
Owning a Home Frees You from the Problems of Renting
Renting is a good option when you’re young, but a time will come when you want more security. When you own a home, there is no chance of a landlord asking you to move on. Buying also gives you the freedom to make your home truly your own. Whereas rental homes often have strict rules about what you can and can’t do to the property, buying a home allows you to decorate in your favorite style. Express your creativity through your design choices and make yourself feel at home. Saying goodbye to the stress of renting is worth a lot to many people, which is why home ownership is so desirable in the United States today.