Owning a home is the ultimate dream of most people. However, some consider renting to be a better option. If you are faced with the dilemma of whether to own a house or rent one out, there are some strong reasons to own instead of renting.
According to the most recent data of the US Census Bureau, the American homeownership rate is currently pegged at 64.3 percent. What’s more, according to the US Census Bureau, over one-third of the US millennials own a property.This makes owning a home a favorable option.
Let’s see what points are in favor of owning a home:
#1 Sense of accomplishment
Purchasing your very own home gives a sense of accomplishment. The dream home you have dreamt about all your life has finally turned into reality. This biggest purchase of your life not only makes you feel proud but also boosts your status in society.
#2 Peace of mind
Owning a home provides total peace of mind. It obviates the need forrenting a house or facing the ordeal of eviction notices. Since it is your house, you will never have to move, unless you decide to sell it. What’s more, you are at liberty to make additions to your house within the building laws.
#3 Freedom to change
Since you are the sole owner of your home, you have the freedom to modify anything if you want, whether it is the color shade of the walls or landscaping of your garden. In other words, you don’t need to take anybody’s permission to make the desired changes.
A permanent home provides a sense of stability. Located in your permanent home, you can establish yourself in the neighborhood and community. You get more involved in whatever is happening in your locality since you will be based here till the time you decide to sell off your property.
#5 Better investment of money
Purchasing a home on a low fixed-rate mortgage is undoubtedly a better investment of your cashvis-á-vis the cost of paying rent. This is because rent is sure to go up with the cost of living, whereas your low fixed-rate mortgage cost will remain the same.
#6 Fixed costs
Renters have to face rent increases annually. And once the landlord sends you the notice for a rent increase, little you can do about it but comply or shift out. With a mortgage, the lending rate remains fixed, if you have a mortgage which rate is fixed. The only increase you may face as a homeowner is that of property tax, homeowner’s association and homeowner’s insurance fees.
#7 Tax benefits
Although the money you need to spend on mortgage, homeowner’s insurance and property taxesmay prove expensive, the IRS allows you to deduct a portion of your expenses.
#8 Cheaper than renting
Depending upon the type of property and its location, the median rent of a single bedroom apartment in the US ranges from $900 to $1,000. For all types of property in the US, the median works out to be around $1,700. Thus, as a renter, you will need to part with 30 percent of your salary on rented accommodation. The ever-increasing rent adds up to more than the amount spent on buying a house in the long run.
#9 Builds net worth
Home ownership is an effective way to build your net worth. You can easily arrive at your net worth, if you deduct your financial liabilities from your assets, such as savings, investments, home equity, retirement funds and other valuables. In the absence of savings and investments, owning a house is a way to store your wealth and increase your net worth.
#10 Provides the option of renting out
If you own two homes, you have the option to rent one out. If you have only one, you can even rent out a portion of it, while continuing to live in it. As per the 2001 American Housing Survey, 21.3% of second homeowners rented their homes to tenants.
#11 Value appreciates over time
In the present times, if you purchase a house after thorough research, you are bound to get one whose value increases each year. The indicators of good location are good schools, friendly neighborhood,local employment opportunities, etc. Also, it should not be in an area with high crime rates, high traffic volume, etc.
If you are keen on knowing whether buying a house is the right decision, you can visit UpNest-official site and contact their real estate professionals for advice.