There's a lot of effort, time, and resources that go into buying a home, from saving up money and ensuring you have good credit to finding the right home and going through the buying process. Everything that it takes to become a homeowner is worth it, though—and we wanted to share a few of the MANY financial benefits to owning a home!
If you need some motivation to make 2018 your year to become a homeowner, read on to learn about some of the financial benefits to owning a home:
1. It's an investment.
Each month you write a check for rent, that's money you'll never see again. Each month when you pay your mortgage on a home you own, you're making an investment in something you personally OWN. You're building equity—the portion of your home you've paid off.
2. A home will usually appreciate.
A home is typically a great investment in part because the value of the home appreciates over time. Depending on the real estate market and how long you live in the home, the home can become worth more while you're living in it. Building your wealth through home ownership is how many people invest in their futures.
3. Owning a home is usually cheaper than paying rent.
Not only is your monthly housing cost becoming an investment, but a mortgage is almost always cheaper than renting!
4. No one can raise the rent on you.
When you own your own, you can lock in a monthly mortgage payment, and you have more control over how much this is. No more worrying about your landlord randomly raising your rent and throwing your finances into uncertainty.
5. There are tax benefits to owning a home.
Many of the expenses that go into owning a home are actually tax-deductible! The interest you pay on your mortgage, your property taxes, private mortgage insurance, and more are all deductible from your taxes.
6. Use your home for your retirement.
Many people need to downsize their homes or move into retirement communities when they get older, and investing in a home now can help you create a nest egg for doing that later. When you're older, you can sell your home and use the money to buy a smaller home, or even rent again. You could also potentially hold onto the home as a revenue stream and rent it out yourself!
7. Transform and remodel as you like!
Your home is YOURS. You can paint the walls, tear out the carpets, and remodel to create the home of your dreams when you officially own your home.
8. Gain more borrowing power.
The more home equity you have, the more opportunities you have to borrow money for something like a second mortgage or a line of credit. These loans can give you more flexibility, whether you need to make some home improvements, want to invest in another home, etc.
9. Use your home as a starting point to buy a bigger home.
Most people can't buy their dream home right away, but buying a "starter home" can get you headed on the right track as you built equity. Things like appreciation and equity can help you accumulate the funds you need to eventually get you into your dream home!
Would you like to learn more about buying a home in the Baltimore area?
Take a moment to check out our Buyers Guide!
Are you ready to buy a home in Baltimore? We have a long list of resources to help you get...