Benefits of Buying a House
Many people are now opting to buy their own houses rather than renting due to the many advantages that come with purchasing a home. However, if you are still wondering whether you should rent or buy your dream house, then this article will assist you to make a good decision. Here are some of the major benefits of buying a house.
1. Pride of possession
In fact, the pride of possession is one of the main reasons why many people desire to own their homes. This means you can remodel or decorate your home in accordance with your own personal taste. For instance, you could possibly repaint the home to a desired color or attach any permanent fixtures that you would like. Home ownership also offers a great sense of security and stability to the whole family.
Even though real estate value will not always move up, over the years, this value of real estate has steadily appreciated. Many people who own their homes view them as a vital hedge against inflation. A house is a very good asset to have, particularly when it comes to loan applications for increasing your standards of living.
3. Mortgage interest deductions
Nowadays, tax rates generally favor homeowners and thus home ownership is an amazing tax shelter. So long as the mortgage balance is lesser in comparison to the total price of the house, mortgage interest is deductible on the tax return. This is beneficial since interest is the major component of any mortgage payment.
4. Preferential tax treatment
For those who get more profit in comparison to the allowable exclusion once the house is sold, the profit is going to be taken into account as a capital asset provided you owned your house for more than a year. Capital assets generally get preferential tax treatment.
The only disadvantage of buying a house is the fact that it is very costly. You will not only require paying the monthly mortgage, but you will also pay for repair and maintenance costs.