Like everything else, there are both pros and cons to owning a home. Home ownership may be a common American Dream, but that doesn’t mean it’s right for everyone. It’s along-term financial commitment that simply may not be the best fit for anyone with fluctuating money flow. For most, the pros far outweigh the cons and for those financially secure enough to do it – owning a home brings immense satisfaction.
Here are 5 benefits of home ownership.
Most homeowners buy a house intending to stay for at least three to five years. During this period of time the home has an opportunity to appreciate or increase in resale value. Though appreciation is not guaranteed and will vary greatly depending on location, most homeowners will see their home values increase in value over time.
The biggest downside with renting is that after you pay your rent check each month, there’s no additional benefit to the renter. With a mortgage payment, part of the payment will go toward interest but part also goes toward building equity in the home. Equity is the market value of the home less any additional mortgage payments. So, after even a few years a homeowner has built up equity that he or she would receive at the sale of the home.
Both mortgage interest and property taxes are deductible on tax returns. Factoring this in to the big picture, and assuming the mortgage payment is easy to make, means that owning a home can often cost less in the long run than renting.
Been reading about the rising rent rates in Nashville lately or maybe you are currently experiencing another increase by a landlord? Buying a home with a fixed mortgage rate means no more rising monthly housing costs. Property taxes may go up and increase the amount due in an escrow account, but even then it’s minimal compared to the monthly increase in rental prices.
Freedom – at least in decorating
While many of the biggest perks to owing a home involve smart money decisions, most homeowner also come to deeply appreciate the freedom of home ownership. Want to paint your walls soft lavender? Or how about installing a black and white checkered floor in the kitchen? When you own a home you can make as many decorating or renovating decisions as you want (and can afford). No more having to wait on a landlord to have a repair made or upgrade in appliances. Quite often, these improvements will also increase the value of your property.
In truth there are a multitude of pros for homeowners, with each homeowner having individual reasons that appeal to his/her own personal personality and lifestyle. Overall though, every homeowners can experience these 5 benefits. Are you ready to take the leap and own your own Nashville area home? Call DeSelms Real Estate today at 615.550.5565 and let one of our award winning agents help you make that dream come true!