To Buy or Not to Buy: The Many Benefits of Homeownership

If the thought of purchasing a home makes your heart race and your brow begin to bead, you’re not alone! In fact, purchasing a home—in particular, making the decision to purchase a home—can cause even the calmest individuals to experience more than a twinge of anxiety!

If you are struggling with the decision about whether or not to purchase a home, it may be best to begin with why doing so could provide you with a host of benefits. Aside from the satisfaction of coming home to something that’s belongs to you and the sheer pride of homeownership, there are a multitude of tangible benefits, as well:

Putting your Money to Good Use

Instead of handing over money every month to a landlord, paying a mortgage means putting some of that money right back in your pocket! Because your property, in all likelihood, will increase in value in years to come, paying a monthly mortgage payment is like a savings account wrapped in the form of a home. The key to financial stability and long-term wealth is making your money work for you, and there’s no better way to do that than through a mortgage and the equity you are building in your home each time you pay your mortgage bill.

Plus, when selling your home, the proceeds are free of taxes, thereby essentially allowing you to save money without being hit with taxes. If you consider the many other investments and the tax implications associated with them, building equity in your home that you will be able to cash out in the future, either through a loan or by selling your home, is a smart financial move. For many people, their home’s equity provides them with retirement income, money for unexpected expenses, money for their children’s education, or simply money for home improvements, vacations, or new cars. 

Getting a Reprieve at Tax Time

The interest you pay on a home loan, a home equity loan, or a home equity line of credit is tax deductible (generally speaking), thereby giving you a bit of a break on your taxes, particularly in the early years of your loan when your ratio of interest to principal is skewed quite a bit. There’s nothing quite as satisfying as watching your tax bill decrease every year, thanks to tax-deductible interest.

The Joy of Financial Stability

There are so many financial uncertainties in life, so it is often comforting to know that, through a fixed-rate mortgage, you can enjoy the same mortgage payment for the life of the loan. When budgeting for everything from a new car to your kids’ college tuition, being able to relying on a mortgage payment that will be the same next month as it will be 10, 20, or even 30 years from now is a good thing. In fact, so many first-time home buyers find that the reluctance to purchase a home is quelled when they realize that a mortgage actually brings them financial stability instead of uncertainty!