Understanding the Benefits of owing first home
Understanding the Benefits of owing first home
The Benefits of Buying a Home
Purchasing a home can seem like an ambitious feat. But do the benefits outweigh the risks? Owning a home involves applying for a mortgage, taking care of your own repairs, and managing your own lawn care. But owning a home also means having the freedom to do what you want with your space. There are many perks to owning a home. Stonetree Apartments is listing our top nine benefits to owning your first home.
- Equity
Purchasing a home at the appraised value (or below the appraised value) means that you have instant equity in the home. What does this mean? This means that even if you were to sell the home in the next year, it is likely that you would make a profit from the sale of the home. Furthermore, any upgrade you make to the home will further add to its equity. - Appreciation
The value of all real estate usually increases over time. This rate of increase is largely based on the neighborhood that your purchased home is in. This increase is also known as appreciation. Appreciation can also be defined as stable, long-term growth in value. In the last three years, median home values have jumped nearly $300,000, which is 6%. That is a significant rate of increase and helps protect against inflation. - Tax Advantages
Purchasing a new home may mean tax benefits. Some of these tax benefits can fall into the following categories.
- Deducting a Home Office
Since 2020, with more people working from home, many of us are using a Home Office. This is a tax deduction available to homeowners. - Deducting Energy Efficient Improvements
Nearly any energy-efficient improvements you make on your home will be tax deductible. Talk to a tax representative to find out more. This may include solar panels, energy-efficient windows, energy-efficient water heaters, energy-efficient insulation, and more. - Deducting Mortgage Insurance Premiums
Mortgage insurance is something you pay for when you buy a home, but it is also a tax deduction. - Deducting Property Taxes
Property taxes are also included as tax deductions.
- Stable Housing Cost
When you pay rent, you are likely to experience increases in your monthly payment due to inflation. When you own your home, and have a fixed-rate mortgage, you will not experience this because your monthly mortgage payment will remain the same. So as you experience increases in your paycheck, your monthly debt-to-income ratio will improve. - Create Your Own Dream House
When you own your home, you can add any upgrades you choose. You can also decorate however you want and have as many pets as you’d like. It’s all yours and that means yours to take care of. - Living Stability and Security
When you own a home, it is more likely that you will stay in that home over time and you and your family will be able to build community friendships and relationships that will strengthen over time. - Good Long-term Investment
When you build equity in your home, that means a ready-made savings plan. Additionally, the US government usually won’t tax the capital gain on the home up to around $250,000. Check with your tax expert to make sure. - Improving Your Credit
Owning a home means a healthy boost to your credit score. When you go from renting to buying and owning your first home, you will likely see a spike in your credit score. This opens you up to more possibilities to invest in your community. - Converting Your Equity to Cash
When you have equity in your home, there are ways to turn that equity into cash. One of these ways is to take out a HELOC or a home equity line of credit. Another way is a cash-out refinance. - Privacy
Renters live with the possibility of a landlord dropping by or sending a maintenance person to quickly help out with a repair or a fix. While this can be a relief, it can also mean a lack of privacy in the place where you live. When you own your home, this means you schedule your own repairs or get good at DIY projects.
Conclusion:
There are many wonderful reasons it could be the right time to own a home. With interest rates dropping, it’s definitely a great time to check it out.
Get in touch with us
Looking for the perfect place to rent while you save for your first home? The answer is Stone Tree Apartments! Finding the best apartment to fit your needs is a necessity and we can help. From comfort to convenience, we have what you need. For more information, or to tour an apartment, visit our website or reach out and give us a call at (470) 730-0182.