Benefits of Purchasing a Home
If you are a first-time home buyer, it is advisable to do thorough research to identify all the pros and cons of home ownership. Nonetheless, you might still ponder whether purchasing a home is in your best interest. There is no need of worrying because having doubts is normal and that is why you should seek professional advice on the benefits of home ownership. Here are some of the reasons home ownership is right for you.
1. Sense of pride
Pride of proprietorship is the reason most people desire to own a home. In other words, home ownership gives you the freedom to paint the house any coat you desire, attach permanent decorations and beautify you home in a way that suit your taste, not to mention that it gives you a sense of security and stability. In simple terms, home ownership is a form of investment.
Even though real estate is ever changing, sometimes down, sometimes up, it has steadily appreciated. Home ownership is a great form of investment and acts as shelter against inflation. Furthermore, it has favorable tax rates for homeowners. New home owners enjoy fully deductible mortgage interest provided that they have a small mortgage balance than the actual price of their home.
3. Equity loans
Home owners with credit card debt cannot deduct any interest paid. On the other hand, equity loans allow home owners to deduct interest. That is why most homeowners prefer to pay off their mortgage with home equity loans. New homebuyers can borrow equity loan for numerous reasons, including home improvement, medical, or coverage.
4. Mortgage attracts equity
Every month, your monthly mortgage payment is added to the balance of the loan, which helps to reduce your obligation. Amortization works in a similar manner, the interest rates and principle payment increase every month.
There are also a number of cons of home ownership. For starters, you are responsible for repair and maintenance.