Benefits of Purchasing a Home
Summary: In addition to owning your own space and gaining the freedom of homeownership, purchasing a home is a major investment toward financial success. The benefits of a home purchase are boundless, but we have narrowed it down to six.
Home ownership is one of the many important decisions one can make. It is not only an investment but also a step towards financial security—an asset homeowners can always tap into. Alongside the numerous benefits of owning a home, homeowners have a net worth that is 40 times greater than renters.
The benefits of a home purchase are boundless, but we have narrowed it down to six.
- Instead of paying your monthly rent to a landlord or corporation, you can pay towards your mortgage and build home equity.
- There are two ways to build home equity:
- Make your monthly mortgage payments
- Track your home’s appreciation over time
- You receive the home equity you have built as cash when you sell your home
- Home Appreciation
- The value of your home can grow, increasing your home equity.
- Homeowners can use their equity to pursue a cash-out refinance to fund a home remodel, consolidate their debt, or pay-off a student loan.
- By purchasing a home, you will have an asset that will likely appreciate in value over time.
- Financial Investment
- Owning a home is a step towards building wealth. It is an asset homeowners can continuously tap into and invest in. Homeowners can utilize the equity within their home for renovations, student loan payments, and debt consolidation. Homes will always be in demand and homeowners can make a profit when selling their home.
- Homeownership provides you with the opportunity to borrow money on the equity you build up by consistently paying your mortgage to use for an emergency, large project, or other expense.
- Homeowners have a set and consistent mortgage payment throughout the life of their housing loan. The only way the payments will alter is if their homeowner’s insurance or property taxes fluctuate.
- Homeowners can stay in one location and avoid moving around due to rent increases or affordability difficulties.
- Renters may be faced with price increases every time they renew a lease or find a new apartment.
- The Freedom of Home Ownership
- As the owner you can decide on the layout, decoration, and design of your space.
- There are no limits or restrictions on owning pets.
- The only rules you need to follow are codified laws and those set forth by your lender or HOA, if there is one.
- Community Impact
- Homeowners can plant their roots with a permanent place to raise a family or settle down.
- They can also be part of committees to help make changes or improve the neighborhood.
Purchasing a home is a monumental decision with ample benefits, but it is also a decision that should have a lot of thought and discussion behind it. Before purchasing a home, ask yourself the following questions:
- What are my financial goals?
- Am I prepared for a long-term investment? Do I want stability or flexibility?
- Contacting a mortgage lender is another great way to learn about the benefits of a home purchase that may be more geared towards you and your situation.
For more information, chat with us at callhallfirst.com or give us a call at 866-Call-Hall.