There are a lot of different emotions involved in buying a house. This is understandable because, especially if it’s your first home, it’s a major decision. No matter what your age, life goals, career plans, or your financial standing, it’s important to understand that there are many benefits of buying a house. In this article, we’ll take the time to explore 8 of these financial and emotional benefits.
If you’re planning a move to Lexington, South Carolina or somewhere nearby, contact the Lafayette Team with EXP Realty. We specialize in working with first-time homebuyers, young professionals who want to “level up”, and more.
8 Benefits of Buying a House
Consider these financial and emotional benefits of buying a house:
May Build Equity
When it comes to investments, buying a house is one of the best things you can do. It allows you to take advantage of the equity of your home over time. It’s important to understand that home appreciation is not guaranteed- but over the past 20 years, home prices in the United States have increased 3 to 6% per year on average. Therefore, when you buy a home, you’re making an investment that typically grows.
Cash-in on Appreciation
As you pay down the principal on your mortgage or your home’s value increases, you’ll find that when you decide to sell, the equity may be a decent amount. That being said, selling isn’t the only way to access your equity. Many homeowners choose to utilize home equity loans or home equity lines of credit (HELOC) to cover large expenses, such as home improvements or to consolidate higher-interest debts.
Mortgage Payment Remains Steady
The third of the major benefits of buying a house instead of renting is that you don’t have to worry about your house payment going up. If you have a fixed-rate mortgage, you can count on your monthly payment to remain the same, no matter what the market conditions are. It’s just as affordable to buy a home as it is to rent- and you’ll be building equity.
Can Claim Tax Advantages
Many of the costs associated with owning a home are tax deductible, including property taxes. The interest paid on your mortgage can also be deducted from your taxable income. The amount of your tax break depends on several factors, including your tax bracket, the size of the mortgage, the interest rate, and how long you’ve held it. As a general rule, the newer the mortgage, the higher your interest rate and a bigger tax break.
Stability and Emotional Security
Instead of paying rent to a landlord to help pay their mortgage, you’ll be making payments on your own property. You don’t have to worry about rent increases, evictions due to the property being sold or re-developed, or negligent landlords. It will be your property and you will be in charge of it.
Can Reflect Your Own Style
When you rent, you don’t have much leeway to make the space your own. However, when it’s yours, you can do whatever you want when it comes to the décor. You can reflect your personal style. You don’t need permission to paint, install new flooring, or expand a room. Plus, when you sell in the future, you’ll be able to get back some of that cost instead of losing that investment.
Put Down Roots
When you own a home, it’s easier to get to know your neighbors, participate in neighborhood social events or join activity groups. Homeowners typically have more influence over community affairs. Plus, there’s the stability of consistent friend groups.
More to Master-Planned Communities than Homes
A master-planned community provides you with more than just a home in a neighborhood. It is a lifestyle experience that includes amenities that appeal to residents as another one of the benefits of buying a house. These amenities often include tennis clubs, golf courses, parks, swimming pools, and more.
The decision of buying a house is a major one- but if you’re ready, it’s a great one to take because of the above benefits. If you are interested in finding your dream home in Lexington, South Carolina, contact the Lafayette Team with EXP Realty. We specialize in working with first-time home buyers and first-time home sellers. We can walk you through the process to make it that much easier on you.