For a while, homeownership earned a bad rap. The subprime mortgage crisis and the economic meltdown that followed left quite a few homeowners underwater and unable to pay their mortgage, with some facing foreclosure. However, today, the tables have turned.
Now, purchasing a New home isn’t just a good idea, it’s highly recommended by experts. For those who are unsure if taking the plunge into homeownership is right for them, keep reading. Here they can learn more about all the benefits that a home purchase has over renting.
Energy Efficiency Benefits
When buying a home or looking at Lots for Sale, it is possible to invest in energy-efficient improvements from upgrading the AC unit to adding better insulation. All these additional investments will lead to significant reductions in monthly utility costs.
Even though renters can make green improvements, such as unplugging appliances and turning off the lights, in most cases, homeowners can make bigger changes, such as installing an energy-efficient roof adding solar panels.
Customize the Space
It doesn’t matter if a homeowner has to knock down a wall to make their master bedroom larger or redo the space to reflect their Art-Deco tastes when they own the structure, it means they have the freedom to make these changes. Even better, there is no worry about losing the security deposit that’s been made.
Purchase Less Furniture as a Homeowner
In many cases, when someone is renting, they need custom furniture that will fit the space. This may include things like miniature furniture that fits into a smaller basement apartment or room dividers. When people tend to move often, they usually end up buying a lot of different furniture over the years. However, by investing in a new construction home, they can settle in for the long haul. In most cases, homeowners will buy a few pieces of furniture that will last for years.
Owning a Home Can Save a Person Money
Most people have heard the term “forced savings.” This is something that is used quite a bit when talking about the benefits of homeownership. Since homeowners are forced to pay a mortgage month after month, they must also put away money, rather than squandering it on things like fancy meals or new shoes.
If they ever decide to sell once the mortgage is paid, there’s a good chance they will walk away with a payoff, even after the costs of ownership are subtracted.
Build a Second Stream of Income
There are several options, including taking in a renter from a spare bedroom to renting out space in the driveway to commuters, there are several ways to monetize a home when someone owns it. In areas where green space is minimal, there are homeowners who rent out patches of grass for those who want to grow vegetables.
There’s No Possibility of Eviction
Renters often face unexpected eviction notice if they have a landlord who suddenly decides to sell the home they are living in, rent to another person, or just end the lease. This is one reason that Laurence Kotlikoff of Boston University recommends homeownership and having a mortgage that is paid for those with a fixed income especially. It is essential for older individuals to be in a home they own, outright, as security against a potential eviction.
No Need to Speak to a Landlord – Ever
It’s not unusual for a landlord to take a long time to fix a broken stove or to fix a sticking door or window. If someone owns their home, they are also in charge. This means they must be home when a repair person comes to fix something, but it also means that the repair person must report to the homeowner, not someone else. Staying abreast of the situation is a huge benefit offered by homeownership.
Fixed Mortgages Do Not Go Up
A fixed mortgage rate will not go up. This is true even if the cost of everything else does. For a homeowner to protect themselves, it is a good idea to make a down payment of up to 20 percent and to take out a 30-year fixed mortgage to lock in the low-interest rates available right now. The fact is mortgage rates have not been as low as they are currently since GIs were coming home from France. Most experts agree that locking in a low monthly payment now is essential and it is a smart step in protecting themselves against future inflation.
Homeowners Are Eligible for Tax Deductions
Another benefit offered by homeownership is that it is possible to deduct the mortgage interest payments that are made by the new owner. However, the perks will not end here. It’s also possible for homeowners to deduct any eligible expenses and in some situations, avoid federal taxes on the earnings they receive when a home sells.
Take Advantage of Low-Interest Rates and Prices
The current interest rates are at historical lows, and all at the same time, the prices for homes are still considered soft. What this means is that now is the time to take advantage of this selling environment. It is an appealing situation that has not been around for a while and worth looking into.
Remember, homeownership is not the right option for everyone. If someone wants to move often or if they want the ability to update their space often, renting may be a smarter option. It is important for a potential buyer to consider if the actual costs of homeownership are something they can handle now.
When it comes to homeownership, there are more than a few advantages to consider. Being informed and knowing what this investment offers is the best way to ensure the desired results are achieved. Buying a home isn’t best for everyone, but for those who believe it is time to make a move, they should consider the facts here. There’s no question that owning a home offers an array of benefits over renting.