Guest Blogger #716, Entry #1660, September 28, 2012
A big house on a hill (or at least half an acre of land) with a fence in a nice neighborhood. This is the description of what most of us would call the “American Dream”. However, sometimes that term is used so much as a cliché that we don’t really take the time out to think about why home ownership is such an important goal.
Have you ever wondered what some of the main benefits to home ownership actually are? If so, check out these top five benefits:
It’s something that you own.
When you’re renting out an apartment, condo or yes, even a house, this means that it belongs to someone else and that you’re paying money in order to use the space. Some people find this to be a pretty close equivalent to throwing money down the drain because at least with a mortgage, you are investing money into something that you actually own. “They” have a pretty valid point.
It boosts your credit.
If you want a way to raise your credit score, purchasing a home is certainly one way to do it. Now, of course, this means that you need to make your monthly mortgage payments on time, but if you do, in time, you could actually cause your credit score to go up by as much as 35 percent.
It’s a great tax write-off.
If you’re in the market for a house, did you know that any house wanted can give you a pretty good tax write-off? Things that you can deduct from your taxes as it relates to your home include property taxes; if you are having your house built, the interest in your construction loan; the monthly interest as it relates to your mortgage payments and the “prepaid interest” that is connected to the closing costs of your house.
It is an investment that only increases in value.
Unlike a car that actually depreciates in value the moment that you drive it off of the car lot, a house is a purchase that tends to increase in value over time. For the past half century or so, on average, houses have gone up between 5-6 percent. What this means is that if you purchased a home that is $250,000, its value could escalate to somewhere between $75-100,000 over the next decade. Plus, if you make eco-friendly improvements to the home like installing energy-efficient appliances, double-pane windows and insulating your pipes, that could make the value of the house go up even more.
It brings about a great sense of stability.
When you are renting property, this means that each year, you have to sign a lease. This also means that each year, the landlord has the right to either invite you to renew it or not. If you are someone who likes having a sense of stability and doesn’t want the thought of having to move looming over your head every 6-12 months, this is another great reason to become a home owner. It’s not just about having a house, but having a place that you truly can call “home”.
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