Owning a home is a dream come true for a lot of first time buyers. This is because having a roof over your head offers you security and stability. However, apart from the peace of mind and comfort that comes from owning a home, there are a lot of other first time home buyer incentives (http://www.schousing.com/First-Time_Home_Buyers) that potential homeowners can enjoy. The following is a rundown of some great benefits that a home buyer will enjoy when they own their own home:
Paying a mortgage on your home will increase the equity that you have on that property. This means that every monthly payment that you make brings you one step closer to completely owning the home. Furthermore, when the value of the property increases, your equity also increases. This is different from renting the home. Though you will still make monthly payments when you rent a property, you will not be any closer to owning the home. In fact, when you move out, you will not own any part of that property regardless of how long you have lived in the home.
Homes are great investments
Owning a home is one of the greatest investments that you could ever make. This is because you can sell it whenever you want. Furthermore, when the property values increase, you will sell it at a profit. If you ever need a loan, you can use the equity on your home to get financing for your education, for a business or even to renovate your property.
You are not answerable to landlords or property agents
When you own a home, you are in charge of making the decisions, and you are not answerable to anyone. You can choose to paint the walls or to renovate the rooms to mirror your unique style. You can live in the home for as long as you like. This is different from a rented home whereby you are answerable to agents and landlords. The landlord may choose to give you a notice to vacate the home. They may even sell it and force you to move out.
Monthly payments are fixed
If you get a mortgage that has fixed interest rates, the mortgage that you pay every month will be the same for the entire duration of the loan. This will help you to manage your monthly income better. However, with rent payments, the landlord can choose to increase the monthly rent whenever they feel like it. This can significantly disorganize your budget, and make it difficult for you to organize your finances.
Owning a home is not just a good investment, but it can help to put money back into your pocket in the form of significant tax deductions. Property and mortgage interest rates are usually tax deductible. In some states, loan costs and closing costs can also be tax deductible.
Having a place to call home, a place to return to after a long day’s work, is one of the greatest investments that a homeowner can make. When you buy your first home, you will have bought an asset that your family can enjoy and your children can inherit. The personal and financial benefits of buying your first home are what make it such a worthwhile venture.