If you’re thinking about renting, you should know that sixty five percent of Americans own their own homes, according to a report on the Financial Literacy Now website. That puts you among the remaining thirty five percent. However, apart from the advantage of being with the majority, here are some other advantages of owning your own home instead of renting.
There is a sense of freedom that comes with being able to change anything you want in your home. If you decide that you would like to repaint the dining area in bright yellowish, so be it. If you wish to redo the landscaping design, go for it. If you think the linoleum in the bathroom is boring, tear it away and replace it with something that you find attractive. Also, you wouldn’t have to worry about being evicted or asked to leave because the home owner has made a decision to sell.
Paying your mortgage loan, homeowners insurance and property fees can truly add to up an astronomical sum of money every year. The good news is that you can deduct a portion of your expenses. However, in line with the IRS, you must itemize your taxes and be eligible for an amount that’s more than the typical deduction granted by the federal government to reap the tax benefits.
As long as you opted for a fixed-rate mortgage, you don’t have to fret much about being hit with increases like renters do. While a landlord can send you a notice that your rent is incrementing, your mortgage lender won’t. Even when everything else — gas, medical, utilities — is rising, you can take comfort in the stability of a fixed-rate mortgage. If you don’t have a fixed-rate mortgage, look into refinancing and getting one to forfend yourself from fluctuating interest rates. Be aware that property taxes, homeowner’s indemnification and homeowner’s association fees — if any — often increase from year to year.
Investing in a home will let you build base in an area or a community. So long as you don’t have to make plans predicated on a twelve-monthly lease or the possible sale of the rental property you are inhabiting, you can join community groups and make friends with other homeowners in your community.
Sense of Accomplishment
Investing in a home is one of the primary acquisitions you and your partner will ever make. Owning your home often results in a feeling of accomplishment and pride that originates from realizing that you and your significant other could actually make the dream of many Americans — home ownership – possible for yourselves.
If you compare the price tag on paying lease to the price tag on paying a home loan and look at the end result, a mortgage might prove to be a better investment of your money. That is true if going for a fixed-rate home loan especially. Over time, your rent will go up with the expense of living. However, if you secure a home loan at a minimal interest rate, oftentimes the obligations are less than renting a similar sized home. Even with the costs of getting financing, insurance, maintenance and taxes, you will find that you are better off with a home loan, if you will stay in the home for quite some time. Another good thing about buying is that it’s possible to generate profits on the sale of your house from appreciation in the value of your house, which is not possible if you rent.
If you are thinking of buying or selling real estate in the Riverside, CA area, Contact The DeBonis Team. Luc & Stephenie have developed a wealth of knowledge about the Real Estate Market.