If you’re on the fence about buying a home, we’re here to help. Check out these 5 advantages of investing in your own piece of property.
To stabilize your housing costs
As a renter, the cost of your housing is influenced by many factors outside of your control. If the neighborhood changes, or the needs of your landlord change, it is not uncommon to see your rent raised without warning. Especially when it comes to your home, this type of uncertainty can be extremely stressful. As an owner, you can have a reasonable expectation of much more stability. While your property taxes may rise and fall, your mortgage, even a non qualified mortgage, should stay relatively consistent. This certainty can allow you to better plan for your money and help you make smart decisions for your future.
To generate passive income
In today’s economic climate, many people are finding that they need to make money outside of their day job in order to grow their wealth. While side hustles can be instrumental in supplementing your income, they have one major drawback: they’re exhausting! For those looking to hustle a little less hard, owning your own home can offer an opportunity for a consistent stream of passive income. By hosting travelers through Airbnb or renting out an area of your home, you can generate a significant amount of extra cash. You might even be able to cover the cost of your mortgage, leaving more of your main income available to accomplish your financial goals.
To invest in your future
While it is undeniable that buying a home requires a massive upfront commitment on the part of a buyer, in the long run, it’s an investment that will pay off. Smart financial planning requires thinking not just about the here-and-now, but also about your future. Buying a house is an investment in this future because it is an asset that holds long-term value. Later, when you’re looking to retire, you will be able to live rent-free, or capitalize on this value, by selling for a profit or borrowing against the equity in your home to support yourself.
To take advantage of tax breaks
Owning a home is also extremely advantageous from a tax perspective. First, while property taxes are tax-deductible, rent is not. This means that while you pay the rent, your landlord reaps the tax breaks. Second, there are many different tax breaks for homeowners. Any chance that you’re a first-time homebuyer? You’re in luck! There’s a tax credit for that. Are you thinking about installing solar panels on your roof? Well, there’s a tax credit for that too. When you take advantage of these tax breaks and credits, you free up more of your money, which can be re-invested in other money-making opportunities.
To be a part of a community
The last benefit of owning a home is the least tangible, but possibly the most important: It allows you to be a part of a community. Renters tend to be transient and often don’t take the time to invest in the community in which they live. As an owner, you have more of a stake in your neighborhood, allowing you to build deeper relationships with your neighbors and other homeowners in your area. After a full year of distance and forced isolation, we have learned that having a supportive community around you can make a huge difference in the quality of life for you and your family.
While, on its surface, buying a home can be intimidating, these five reasons show that it is actually an incredibly smart move for someone taking steps towards a financially successful future. Buying a home can help you to build wealth and stability, helping you to stay secure for years to come.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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