Appreciation and Stability Over the Long Term
Owning a home is one of the most stable ways to accumulate wealth over the long term. Real estate prices always cycle and no homeowner should expect a dramatic increase in home prices over the short term. In fact, as long as you stay in the home long enough depending on market conditions you should certainly be able to sell the property for a profit at a later date.
This makes real estate one of the best investments you can make for yourself and also a means to pass on wealth and build a foundation for future generations of your family.
Home equity is the difference you owe on your mortgage and the market value of your home. Monthly payments are split between interest and principal, every payment you make towards your mortgage balance per year, which you would usually be paying otherwise.
Homeownership can provide a great nest egg and investment for your golden years. The longer you won your home the more it should eventually worth. Whenever you decide to retire you have the choice to sell your home for a profit and choose to either rent or downsize. Also, there is another great option of renting it out as an investment and using the income to enjoy your golden years.
Freedom to create the home you want
Owning your own home gives you the freedom to design and create any living space to your liking without having to get any approval from others. You can have pets or that big aquarium in your living room and all without having to ask anyone’s permission.
lessens the interest portion of your loan and pays down your principal balance and helps build equity in the property.
When you pay down your loan balance, you’re actually building wealth as your property value is actually increasing simultaneously. Home equity loans or HELOC’s (Home equity lines of credit) can be used as a rainy-day fund as it is very flexible and can be paid back like a credit card. Heloc’s usually offer lower interest rates and can be used for just about anything including home upgrades or repairs and buying that new car you always wanted to paying off educational expenses for your family.
One of the greatest benefits of having a home is usually tax-deductions or savings. Property taxes, mortgage interest, maintenance and expenses are usually tax deductible that can amount to thousands of dollars
Building an extensive and strong credit history
Whenever you make your loan payments on time it demonstrates to lenders that you are responsible and the risk of defaulting on large amounts is very low. A good and strong credit history could be used to your advantage when you need to make a major purchase such as a car or need extra funds to make repairs to your home.
Owning a home comes with the great benefit of having your privacy and seclusion as you would not have to share any common areas with anyone. You would not be subjected to any noisy or nosey neighbors. You can also have your own parking space for your family and have the ability to have a backyard for your family and kids to enjoy.
It’s your home!
You don’t have to worry about being evicted at the end of your lease. It’s your property to enjoy as long as you wish