4 benefits homeowners enjoy that renters don't
Are you considering the purchase of a home this year? If so, congratulations! Homeownership provides a myriad of advantages to individuals, both financial and preferential. And, with housing markets up and down the East Coast continuing to show signs of significant improvement, a greater number of buyers are expected to enter the residential sectors in their respective areas in the coming months.
Thus, the best time to begin pursuing the path to homeownership may be right now. If you're still weighing the pros and cons of owning a home compared to renting property, considering the following four benefits may help you make up your mind once and for all.
1 - Chance to build equity
When renting property, you are tasked with sending your landlord money every month as payment for living there. And, you never see these funds again. This is not so with homeownership, as your monthly mortgage payments count toward your outstanding balance and help you to build equity in the house. In fact, homeownership not only benefits you in that way, but it's actually cheaper in the long run. According to the National Association of Realtors, after about six years of living in a house or condominium, a homeowner's regular monthly payments are usually lower that those renters are required to pay.
2 - Provides you creative control
When renting, did you ever want to paint your bedroom a different color? Was your request denied by the landlord? This will never happen again if you own a home. Due to the fact you own the property, you are allowed to make any structural and aesthetic changes that you wish - as long as they are allowed by the local municipality's residential codes. While you may have to obtain the proper permits to add on to your house, you have free reign over its interior color scheme and accents. You have the right to have new appliances and amenities installed, and don't have to worry about asking before upgrading flooring materials or hanging pictures and paintings. The same goes for your backyard, as you can include whatever type of landscaping, lawn art and outdoor decorations you wish.
3 - Save money through tax deductions
Although most homeowners dislike having to pay interest on their mortgages and the property taxes, they offer the chance for substantial savings during tax season. According to Bankrate, these expenses are typically deductible on federal and state income taxes. In the first few years of ownership, when your monthly payments are generally used to repay interest costs, this ability can be a significant benefit. In addition, a number of closing costs - like loan application fees, appraisal outlays and points paid - could be eligible for a deduction, either immediately following a sale or when you finally decide to move on and list the home for sale.
4 - Added degree of safety and security
In addition to the shelter offered by a house's walls and roof, homeowners can enjoy heightened safety and security, as they are the only ones with access to their property. When renting an apartment or house, the landlord and property management companies all likely have keys to the locks, so individuals may not experience a strong feeling of being safe. That can change after a housing purchase, however. Whether you want surveillance cameras or motion-sensor lighting fixtures installed, it's entirely up to you. Additionally, this added security can provide you - and your kids - with social benefits. According to a separate report from NAR, homeownership often spurs an increase in civic participation, as well as self-esteem and improved health in both adults and children.
Interested in pursuing a home purchase, but need some financial assistance to fund the transaction? Consider contacting Poli Mortgage Group. The firm's workforce of Loan Officers are highly skilled at finding low rates and originating affordable mortgages. Call today at at 866-353-7654.