These days, many young people see homeownership as something that is completely impractical and out of reach. Most Americans under the age of 35 are choosing to continue renting rather than taking the plunge on a new home. While this may seem like the best short-term fiscal decision, it is not necessarily a good long-term strategy. Paying rent on an apartment, house, or condo provides no returns beyond a place to live. Alternatively, owning a home offers plenty of financial benefits over the short and long term. So, in this guide, we will take a closer look at all of the ways investing in a home can benefit your financial outlook!
Build Home Equity
Getting a mortgage can feel daunting because it requires you to take on a lot of debt all at once. However, one major benefit of getting a mortgage is that you can slowly build equity in your home. Equity refers to the part of the home’s value that you’ve already paid down. You can use this equity to get loans or improve your credit. Over time, your equity can also act as a financial security blanket in the event that you fall on hard times.
Take Advantage of Tax Deductions
Moving into a new home can feel stressful. Fortunately, you can make the moving process a lot easier with the help of Black Tie Moving. Additionally, you can start capitalizing on your mortgage payments as soon as you file your annual tax return. Most homeowners can qualify to get a portion of their mortgage interest payments deducted from their tax liabilities. In some cases, you may even be able to deduct part of your moving expenses!
Watch Your Home Appreciate In Value
There is no guarantee that your home will increase in value. In fact, there is always the risk that your home could depreciate in value. This could mean that you have to pay for a home that is worth less than it was when you made the purchase. Fortunately, the housing market typically trends upward. As a result, many homeowners see their investments appreciate in value. This means that you can eventually sell your home for more than the purchase price.
Control Your Housing Payments
Owning a home gives you much more control over your housing payments. With a rental, you typically have little or no say in your monthly rental payments. Alternatively, a purchased home allows you to negotiate your monthly mortgage payments with a lender. Additionally, you can refinance your home to qualify for even lower monthly payments in the future.
Leave a Physical Asset For Your Children
Finally, it’s important to think about what you want to leave for your children and future generations of your family. If you’re like most parents, you want to leave something behind that will benefit your children and, ideally, stay in your family for generations to come. A home is one of the most expensive assets you can leave to your children. This will essentially guarantee that your children have something valuable to either live in or sell for a substantial profit.
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