Top 5 Benefits of Home Ownership
Buying a home is an exciting milestone to living the American dream. There’s a lot that goes into the home-buying process and it can often feel a bit overwhelming. When you work with a team of experts, your journey to home ownership can be streamlined and stress-free. There are many benefits of home ownership from building a strong financial foundation to having the freedom to design the home you’ve always wanted.
Home Ownership is a smart investment
As a homeowner, your mortgage is being invested into your future rather than going into someone else’s pocket. Owning a home is a smart, stable investment. As soon as you have paid your last mortgage payment, you own your property outright. With each mortgage payment you make, you are adding a little more money to your future finances. According to Forbes, a mortgage is like a forced savings plan. It’s essentially driving you to save your money each month and is a great way to line your future pocket. Think of owning a home as a solid long-term investment. As property values increase and the amount of money you owe on your home decreases, you could reap the benefits of a substantial return on your investment.
You can build equity
Equity is a major benefit to owning your own home. The amount of equity you have in your home is equal to what you could sell the home for minus what you still owe. Because you pay more interest up front, you receive more equity over time. Some homeowners opt to pull equity from their home through a cash-out refinance for emergencies and other major milestones in life. Others wait until the mortgage is finished and use their equity towards retirement or other large purchases. The more equity you have, the better your credit score becomes which leads us to another major benefit.
Better credit scores
Did you know that a mortgage is considered “good debt”? Having good debt and paying your mortgage payments on time qualifies you for an increased credit score. Credit scores are incredibly important to everyone’s financial well-being and is an essential part of making large purchases. Having a good credit score is the key to making other large financial decisions like buying a car, going to (or saving for) college, and making home improvements.
Tax deductions are significant
There are some major tax benefits to owning your own home. First off, you can reap the benefits of property tax deductions. Did you know that every penny you pay towards your primary residence or vacation home real estate property taxes are fully deductible? This can be a significant annual savings come Tax Day. Another beneficial deduction comes from closing costs. You can claim origination fees from your loan during the first year of homeownership. This can result in considerable savings due to the historically high amount paid at closing.
Finally, mortgage deduction is a huge benefit. As a homeowner you’ll be allowed to deduct the mortgage interest from your taxes each year. In the earliest years of owning a home your interest paid will be at its higher, so these deductions are significantly greater during the beginning. All the tax deductions afforded to homeowners are significant and can mean you get more cash back during tax season.
You will have the freedom to create the home of your dreams
As a renter there are often things about your home that you wish you could change but aren’t able to. One of the major perks to owning your house is that you can design the home you want. As a homeowner you’ll have the freedom to paint walls, hang artwork and make changes to your house both cosmetic and structural. If there is a renovation project you’d love to bring to life, you also have the freedom to do so.
Keep in mind you can also own as many pets as you want! A lot of landlords and apartment complexes have rules and regulations on the type of pet you’re allowed to own (if at all) and often require pet deposits. As a homeowner you can design your home around your entire family including all those four-legged members.
Last, but certainly not least, you are able to choose any contractor you’d like that will make repairs and home improvements. As a renter you are forced to be at the mercy of the landlord and property manager when it comes to fixing things in the house. Sometimes these contractors are quick and efficient, but other times you may be waiting weeks and have to be more flexible with your schedule. As a homeowner, you’re free to choose whoever you’d like to work with and select based on budget, reputation, and personal preference.
VA home loan benefits
If you are an active-duty military member or veteran, you may be eligible to take advantage of the VA Home Loan. This loan offers unparalleled benefits that millions of service men and women have taken advantage of over the years. For more information about the VA Loan process, check out our blog that details the benefits, definitions, eligibility, and more. You defended the American dream, now is your chance to live it.
At Military Home Spot Lending, we know it’s important to feel confident in your home buying journey and the VA Loan process can feel overwhelming. This is why we created a completely free VA Home Loan seminar. This virtual seminar can be taken on a smartphone, tablet, laptop, or desktop at the pace that works for you. Through our seminar, we’ll take you through everything you need to know to make your VA Home Loan experience as seamless as possible. Discover all that your military service has earned you and start your home buying journey today.