Sometimes it is better for a person to rent, but most often home ownership has many more benefits and advantages.
About 10 years ago, a retired had an aunt and uncle who rented an apartment in Las Vegas. Uncle Jim (not his real name, but that’s what I’ll call it) was a retired minister. Throughout his career, he and his wife lived in parsonages, which are homes furnished by the congregation while they ministered there.
He and his wife told me that the biggest mistake ever made not to invest in buying a home. In their retirement years, when his friends withdrew others lived in houses that were almost paid off and had appreciated greatly, Uncle Jim and his wife were using much of their limited retirment money to make rent payments expensive condominiums. Let me strongly cautioned not to commit the same mistake they did.
Recent studies are showing that there are many benefits for both owners and the community for owning your own home, including increased education for children, adolescents less pregnancy rates and higher annual annuity for children. In addition to these, here are some of the main advantages of owning your own home.
More Stable Housing Costs
The rent can be unpredictable and typically rise each year, but most mortgage payments remain unchanged during the period of the loan. If taxes rise, the increase is gradual. This stable housing cost especially important in times of inflation, when renters and owners to lose money to make money.
Taxation of savings
Homeonwers may be eligible for signifigant tax savings because you can deduct mortgage interest and property taxes on your federal income tax and many states tax income. This can be a considerable amount of money at first, because the early years of the mortgage payment consists primarily of interest and taxes.
If you need to refinance to consolidate other debts (an opportunity not to have if you are renting) interest in this is also tax deductible.
Equity
Instead of payments disapearing into someone elses pocket, home owners are building equity in your home. This is often one of the assests of a senior investment. Every year that you own the house to pay more for the principal, that is money going to come back when the home is sold. It’s like having a savings account that grows faster schelduled the longer you have it. If the property appreciates, and usually does, is like money in your pocket. And you’re coming to take advanatge of that, the owner. You can then use this equity to plan for future goals like your child’s education or your retirement.
It’s yours!
When you own a home you are in control. That the freedom to decorate and landscape is the way you want. You can have a pet or two. Nobody can come and check your home and threatens to evict you.
Even young people like college students on their own, often benefit from home ownership. They are put ahead of other girls her age financially by helping them with their credit and what is often an excellent investment. Often a college student buying a home to rent out rooms, and his companions just make payments on the house. When the student is ready to proceed, he or she can sell the house (hopefully a profit) or keep it as an investment and continue to rent.
Buying a home is an important decision. It is often the largest purchase a person makes in life. Home ownership also comes with some increased responsibilities, and is not for everyone. There are some disadvantages to homeownership that you should take into account.
Expenses increased
Your monthly expenses may increase, depending on your situation. Even if the monthly payments are the same owners, the house still have to pay property taxes, all utilities and all maintenance and upkeep costs for the home. It is often necessary to provide the devices were equipped with a rental.
Freedom decreased mobility
Homeowners can not move as easily as a tenant only has to give notice to the owner. Selling a home can be complex and slow.
Risk of depreciation
In some areas with overinflated prices, there may be a risk that the house will depreciate instead of increase in value if prices fall. If you later sell the house, you can not get enough money from the house to pay your mortgage, and still have to pay money to the mortgage company.
Possibility of foreclosure
If for some reason you can not make your payments, you risk the lender forclose on your propety. This can result in the loss of your home, any equity they have earned, and the loss of their good credit rating.
When considering home ownership, it is necessary to weight the pros and cons for you. If you’re like most people, you find that homeownership is worth the risks and disadvantages.
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