There are over 330 million people currently living in the United States and nearly 65% of the adult population are homeowners.
However, owning a home isn't just about having a roof over your head and somewhere to rest at night. There are also significant financial benefits of buying a home.
Are you trying to choose between the benefits of buying a home vs renting? Then you've come to the right place aspiring home owner!
Read on to find out nine financial benefits of buying a home.
1. Buying Is Cheaper Than Renting
There are around 43 million renting households in the United States at the moment. This is a great option if you don't have the budget to buy a home or if you move around a lot.
However, in the long run, renting is much more expensive than buying a property. Compared to having a mortgage, monthly rental payments are much higher.
On top of this, monthly payments provide minimal returns. Obviously, you'll be paying for the roof over your head but you are not getting a long-term return for your money.
2. You Can Deduct Home-Owning Costs From Your Taxes
If you are a homeowner, you may be able to deduct some of the costs of running your home from your federal income taxes.
Mortgage deductions let you deduct the interest of your mortgage from your income tax. This is higher in the early years of homeownership and is one of the benefits of being a first time home buyer. In some cases, if you pay real estate property taxes you may also be able to deduct these from your income tax each year.
3. It Helps You Build Equity
One of the other benefits of buying a new home is that it helps you to build equity over time. This happens as you pay your mortgage off.
Let's say, for example, you buy a home for $250,000 and take out of mortgage for $125,000 to help you pay for it. With each monthly payment, you owe less and this means you are building equity.
4. You Can Reduce Your Monthly Bills
Buying a home with the help of a real estate agent isn't the only way that you can help yourself out financially. Owning your home allows you to adjust it to suit your lifestyle and your budget.
For example, improving your property's insulation and heating systems can save you a lot on your monthly bills. This can also reduce your carbon footprint. This is something you can only really do if you own a property.
5. A Home Is an Investment in Your Quality of Life
Owning a home provides a lot of stability in comparison to renting and this can have a huge impact on your quality of life. It means you'll feel less stressed and it will improve the relationships with anyone that you live with.
This can have a huge impact on your ability to work and focus as well. So you'll find that it benefits your financial future and stability!
6. A Home Is An Investment You Can Control
Whether you're looking for the benefits of buying a foreclosed home or a new-build, when it comes to investing either is a great option.
With other types of investment, you may feel like you have less control or understanding of where your money is going. While you can't control the property market itself, you can choose when to buy or sell. And keeping your home in good condition will help you protect your investment.
7. Owning a Home Helps You Budget
In terms of financial stability and control, owning a home will help you to budget your money better.
This is because you'll have a clearer understanding of what you need to spend and when. To help you keep your budget in check, make sure you have homeowner's insurance and a little pot of home maintenance money set aside for emergencies.
8. It Makes Starting Over Easier
If you do decide that you want to move, owning a home will make things financially a lot easier as well. You may decide to rent out your existing property and use the rent to cover your living costs somewhere new. Or if you're moving more permanently, you can sell your home to free up capital.
While moving home is never cheap, you save a lot of money on costs when you own your property compared to when you rent. For example, you have to balance deposits, end-of-tenancy cleaning costs, and other up-front costs that come with renting.
9. You'll Have Financial Security Away From Your Bank Account
When it comes to financial assets, owning your home means you don't have to put all of your eggs in one basket. In fact, you can rest assured knowing that you have a certain amount of value available in your property if you need it.
This means that if your income drops for some reason or you make a bad investment, you know you have other assets available to make it through a rough patch. You could sell your home for a smaller property to free up some capital. Or you could rent it out while you downsize to save some money.
Whatever you choose, owning a home gives you more options when it comes to your financial stability.
Make the Most of the Benefits of Buying a Home Today
As you can see, when it comes to real estate there are plenty of financial benefits of buying a home instead of renting one.
So if you're looking for your next investment, you don't have to look any further than the front porch of your house!
Did you enjoy this article? For more great tips and advice on managing your real estate and investments properly, keep scrolling. Also visit the Real Estate section of the Bootstrap Business Blog to learn more about the benefits of buying a home and house improvement ideas.
