Buying a home is often referred to as the “American Dream.” While there are many obvious benefits of owning a home, there are also some that are not so obvious.
1-Stable Monthly Payments
If you choose a fixed-rate mortgage, then your monthly payments will remain mostly the same, which is one of the best benefits of owning a home. When renting a property, there is always the unknown if the monthly payments will increase each year when you renew your lease. Consistent monthly payments that come with owning a home can provide some peace of mind when it comes to creating a monthly budget. Of course, monthly payments can change when owning a home if property taxes or homeowners insurance change, but the amount of change in property taxes is typically a very small amount.
2-Opportunity to Build Equity
The longer that you own a home, the more you pay towards the principle balance of your mortgage. As the balance of the mortgage lowers, and hopefully the value of the property increases, the larger the equity!
3-Cheaper Than Renting Overtime
Undoubtedly, there are many associated when buying a home, such as the down payment, appraisal fee, and homeowners’ insurance. The upfront cost to buy a home is substantially more than just paying monthly rent to a landlord. Yet, over time, owning a home is cheaper than renting which is a great benefit. In Arizona, if you compare a rental property and the monthly mortgage of a comparable home, the cost of ownership is typically much less.
4-Owning a Home Provides Tax Advantages
Paying taxes is a necessary evil, but a great benefit of owning a home is the tax advantages that it provides. Arguably the biggest tax advantage of owning a home is the option to deduct paid monthly interest from your tax returns. If you’re unsure how owning a home will impact your taxes, it’s recommended that you discuss it with your accountant so you fully understand how owning real estate will impact you come tax season.
5-Build Your Credit
There are many factors that impact a person’s credit score, one of the most important being the length of credit history. Since the length of a mortgage is typically 15 or 30 years, having a mortgage on your credit history is a great way to lengthen the average of your credit accounts. In addition to improving the average length of credit accounts, each and every month that a mortgage is paid on-time it shows that you’re a responsible borrower which not only can improve a credit score but also improves the chance of approval for future credit accounts.
Owning a home is much more than just having a place to live. Give me a call when you’re ready to become a homeowner! 602-329-7782