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Buying a home can be one of the best decisions you’ll ever make. However, deciding if you should rent or buy your next home can be a very difficult decision. But once you understand the benefits of owning a home, you can have confidence as you move through the home-buying process.
You Can Save Tons
Buying a home is usually a good investment. That’s because home values continue to rise, while rent prices are also reaching higher levels. So whether you plan on living in a home full-time or you decide to make it a rental property, buying a home can be a smart financial decision. This is even more true if you keep the home for a long period of time. If you look at the data, home prices have skyrocketed dramatically. Back in the 1940s, the average price of a home was around $30,000, according to The U.S. Census Bureau. In the year 2000, that jumped to nearly $120,000. While there aren’t many people who still have a house from the 1940s, this example shows you how home value can increase over a period of time. That being said, buying a home and keeping it around can do wonders for your wallet.
There Are Tax Breaks
While it depends on your individual situation, mortgage interest and certain closing costs are typically tax-deductible. Furthermore, these tax breaks are higher early on in homeownership given the high-interest payments. In addition, mortgage insurance and property taxes might also be tax-deductible. This provides a huge benefit to homeownership, but things get even better: once you decide to sell your home, you can make up to $250,000 in profit and all of that is tax-free. Tax breaks add comfort for homeowners and provide key incentives that be very worthwhile.
It Can Improve Your Credit Score
Another key benefit that comes with homeownership is that you can improve your credit score. This is especially true for those who don’t have a long credit history or many installment accounts. Paying your mortgage shows that you’re a responsible borrower and that you can be trusted. Also, credit bureaus will reward you more for mortgage payments compared to payments for credit cards, student loans, etc. Additionally, very few landlords will report rental payments, so you’re not doing any favors for your credit score by paying rent every month.
Homeownership can be a scary thought, but understanding the benefits involved can help you make the right choice for your needs.
About the Author
Robin Anderson Real Estate
“My Passion is people and relationships and I promise to provide my clients with exceptional service tailored to their individual needs.” -Robin Anderson
Georgia native, Robin Anderson brings her passion for people and her love of homes to work for her clients. She and her husband, Andy, have been married for over 30 years and have two adult children, Ellen and Drew. They currently live in Fulton County, but Robin has lived and invested in properties throughout metro Atlanta as well as helped clients buy and sell. She has been integral to many real estate endeavors including designing and building several custom homes, remodeling homes, subdividing land, managing rental properties, and buying and selling properties. She spent her first 3 years in real estate working with a new home builder, and she has spent the last 6 years working with buyers and sellers in her own community. Robin is highly motivated but sensitive to the fact that buying and selling homes can be an emotional experience, so she makes it a priority to keep clients closely informed throughout the process and strives to produce quick results. She appreciates the opportunity to help her clients navigate the real estate process, and she aspires to deliver quality customer service that is both informative and positive. She is driven to provide outstanding service for her clients and she is focused on building successful and lasting relationships with her clients. This personalized service earns her enthusiastic referrals from clients she is pleased to call friends.Edit
