As a potential first time home buyer it is important to consider all of the reasons why home ownership is appealing to you. After all it isn’t something that you simply do on a whim, but is something that requires a lot of thought due to the investment of time, emotions and money.
Advantages to Owning Your Own Home
- For starters, it’s your own home and it belongs only to you. You may find yourself at a point and time where you are probably prepared to settle down and become a more permanent part of a community. If you are looking to raise a family you may need more room or maybe you just simply want more space than a rental unit has to offer you.
- Steady housing costs. While rent may normally increase yearly, the “fixed-rate” on principal and interest portions of mortgage payments usually remain unaffected your entire repayment period. For example, if you settle for a 30-year fixed-rate mortgage, you will have 30 years to pay your mortgage without an increase on your mortgage rate.
- Increased value. Houses can increase in value or appreciate over a period of time. A house you buy now will potentially be worth far, far more five to ten years from now.
- Scheduled savings. As a homeowner, a buildup of your monthly mortgage payments creates “equity”. Equity is basically an ownership interest in the property in which you can borrow against or convert into cash by selling your home. Renters however, must keep on paying rent without ever having the chance to accumulate equity.
- Tax incentives. As a homeowner you may be eligible to take advantage of several significant tax breaks that aren’t offered to renters. The interest you pay for your home mortgage is usually deductible and could potentially save you a considerable amount of money each year in federal income taxes.
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