10 Advantages Of Owning A Texas Home
It is everyone’s dream to own a home at some point in life. Among other reasons, owning a home means you can have a space you call genuinely yours, and that you can settle down without having to think rent and everything else that comes with renting a home. While owning a home is one of the best feelings and achievements ever, it sure does come with lots of obligations and responsibilities, all of which you have to take care of. If everything is done correctly, having a place you can call your own not only increases your investment power and saves you lots of money in the long run, but also limits your financial risks. Here are some of the benefits of owning a home.
1. There’s Little To No Returns On Investment In Renting
One of the perks of renting a home is the fact that you don’t necessarily have to maintain the house or pay a mortgage. Living in the same house for a long time, however, means you have to handle minor repairs and maintenance at some point. The landlord may also be adamant about doing major renovations, forcing you to either move or handle the repairs yourself. That said, it is a lot more beneficial to pay the mortgage as compared to rental payments. Rental payments aren’t an investment but rather a recurring expense.
How much money do you pay in terms of rent? Supposing you pay $1000 per month, the amount could quickly add up to $120,000 within ten years. This is roughly the same amount you would have spent on your mortgage which totals to 1/3 of your total home mortgage. It would, therefore, be a wiser decision to pay for a mortgage instead.
2. Your Home Is An Investment
A home, unlike other purchases, appreciates over time. Although each market is different, the price of homes generally goes up regardless of recession times. That said, you can be assured that the value of your home will continue to increase as you pay down the mortgage. The best thing with mortgage payments is that the debt amount goes down each time you make payment. This creates better equity for you, the homeowner.
3. Gain Equity
A home is not only an investment but also translates to equity. Each monthly payment goes to both the interest and paying down the principal balance. Equity can also be defined as the amount of money you’ve paid towards paying off the principal balance. In other words, the money is available for reinvestment in both the home and another home you might consider buying in the future.
4. Tax Benefits
You get to enjoy a few tax incentives from investing in your home. This is because the government sees it as economic growth, hence rewards you (the buyer) by offering several tax incentives. You can, therefore, deduct the mortgage interests in your tax returns. This comes in handy during the start of the mortgage payments, where one is required to make a significant amount in the deposit. In addition to this, you can enjoy tax benefits from private mortgage insurance and other purchases related to the home-ownership.
5. Stabilized Housing Costs
With a fixed-rate mortgage, you are required to make the same payments over the life of the loan. This is usually 30 years depending on the initial deposit amount. The fact that you already know how much you will be paying per month over the 30 years, monthly rental payments are more likely to fluctuate or even climb over time. Adjustable-rate mortgages too, have a fixed cap on them, which again gives you more control over what you can pay and budget for the same. This means you can plan well for all other home-related expenses, some of which can be adjusted to favor the mortgage payments.
6. More Control Over The Living Space
Renters are required to make minimal or no adjustments to space they are living in. This means you cannot renovate or make necessary improvements to the house to accommodate your specific needs. Homeownership, however, gives you the freedom to make required adjustments and improvements for as long as they contribute to increasing the value of the home. The equity gained over time can also be used to help the homeowner get financing for major home improvement projects as well.
7. Improves Your Sustainability
Owning a home makes it possible to create and build a more sustainable future. This isn’t a privilege a tenant would have considering the unusually high cost of living and ever-increasing housing expenses. Mortgage payments make it easier to budget your income accordingly without worrying about the possibility of the payments ever-increasing or changing. For this reason, a homeowner can budget for both the mortgage payments and a retirement plan.
8. No Need to Move Anymore
In addition to increased sustainability, owning a home means you will have a more stable financial plan. This is because you never have to keep on hunting for a better rental house or keep moving throughout your life. Tenants always have to move in search of better homes increasing their emotional and financial burden. Investing a home, however, means you never have to worry about all these, hence you can focus on making your home much better.
9. Social Benefits
Owning a home means you get to create a social circle of friends among other homeowners in the area. The reduced need to move therefore comes with numerous social benefits that a regular tenant cannot or may never enjoy. You also get a chance to be involved in various community developments and education opportunities for your children.
10. Use Your Equity For Another Investment
The fact that you will be paying for your home through a mortgage works in your favor in many ways. For starters, you can use the equity to make future investments on a higher-valued home, the same house, or even a second home. You can also use the home equity credit to seek financing for other forms of investments aside from the home. This could be an RV, boat, or even a cabin.
We at Home Loan Center offer the lowest mortgage rates on the market. We also have several low-cost mortgage loan plans that you can choose from for refinancing and purchase. Our officers will help you choose the right home loan program based on your specific needs and requirements in Spring, Tomball, Cypress, and The Woodlands area. Our mortgage rate is calculated according to today’s market conditions, hence favorable to all.