Benefits Of Buying a house
Buying a piece of real estate such as a house is one of the most expensive but important investments that most people do in their lifetime. This large purchase brings with it a very high level of responsibility i.e. the decision regarding loans issues and its repayment. But owning a house has its own set of happiness and pride. A few of these benefits include:
The most significant benefit of owning a house is the equity that automatically builds within property. In most cases, people that purchase a house at a price lower than the actual value of the house. As an owner when you decide to re-sell this property the profit can then be used to invest in some other property.
2.Pride of Ownership
Owning a house gives the pride of ownership to the owner. This is one most important reason why people desire to own their house. It gives you the liberty to paint the walls according to your needs and desires, attach permanent fixtures that cannot be done in a rented house, and decorate it according to your taste. Home ownership brings with it a sense of security and stability to you and your family.
3.Appreciation of money.
Although the values of real estate keep moving in cycles, yet over the long term, real estate has always appreciated in terms of money. Many people consider their investment on house as a hedge against price rise.
4.Deductions on mortgage interest
Purchase of a house gives a superb tax shelter and the tax rates mostly favor homeowners. Interest is the major component of all kinds of mortgage payments. Till the time your mortgage balance is lesser than the actual price of your house the mortgage interest is completely deductible on tax return.
5.Preferential Tax Treatment
When selling a purchased property, if you receive greater profit than the permitted exclusion, that profit will be taken as a capital asset if you have owned the house for more than a year. Such a transaction will be given a preferential tax treatment.
6.Property Tax Deductions
In case you have bought your first house or a vacation home then real estate property taxes are fully deductible for purposes related to income tax.
Owning a house has lots of financial and physiological benefits, especially for those who are buying it for the first time. Instead of spending your money on futile things, buy a house for yourself. This will not only give your financial expenditures a proper direction but also give lots of psychological peace and security to you and your family