The Benefits of Home Ownership
Owning a piece of the “American Dream” is often the cornerstone of a family’s goals. Buying a home is a huge commitment and investment, but it provides many benefits that you many not even realize. It can be beneficially financially and to your overall well being. There has been a great deal of debate in recent years over the true benefit of owning a home, but the long term evidence can’t be disputed. Don’t be misled by the articles that try to say renting is superior to buying. Some of the advantages are financial, but there are also many positive psychological benefits for you and your family. Below is a list of the top benefits of home ownership and advantages of home ownership.
Long Term Investment
Homeownership is a very safe long term investment. In recent years, people have doubted the value of home ownership because of the subprime mortgage crisis, but the long term prospects are still very strong. A person who rents a home for 30 years will have nothing, but a person who owns a home with a mortgage for 30 years will own a valuable, cash generating asset.
The Federal government provided tax breaks for mortgage interest for many years now. These tax breaks can save you thousands of dollars per year. In addition, there are often state and federal tax breaks for property taxes paid.
If you decide to move, you can turn your property into a rental. This will create extra work and hassle for you, but having someone pay your mortgage is a no-brainer. There are many property management companies that will take care of all landlord duties for the rental. Using a company to handle these responsibilities can relieve a lot of stress and headache.
If you own a home free and clear at the time of retirement, you will probably have a steady stream of income for the rest of your life. You can take a reverse mortgage to generate a steady stream of income until you’re dead, but you lose the equity that has built up. Alternatively, you may choose to turn your home into a rental property, which would provide income and all you to maintain equity.
Potential Windfall Profits
In some rare cases, an important development might be built near your property, such as a new PGA golf course. Special events like this can cause property values to skyrocket. If you own your home this could provide you with huge profits when you decide to sell.
Pride of Ownership
Owning your own home provides a sense of accomplishment that is not there when you rent. Knowing that your house or land can be passed down to your heirs is a very nice feeling. When you rent, your landlord could decide to kick you out at any time. When you own, you call the shots and can only be kicked out in very rare circumstances.
The Ability to Improve your Land
In my opinion, the best part of owning property is being able to do whatever you want to your land. One day I simply decided to take a sledgehammer to my kitchen and start a full remodel. Had I been renting, my landlord would have thrown me out immediately! Fixing up your home is rewarding and can add value for both short and long term financial benefits.
Learn More about Owning a Home
We hope you learned more about the benefits of home ownership